If a Firm Increases All of Its Inputs by 10

question 208

Multiple Choice

If a firm increases all of its inputs by 10 percent and its output increases by 10 percent, then

• A) it is encountering diseconomies of scale.
• B) it is encountering economies of scale.
• C) it is encountering constant returns to scale.
• D) the marginal products of all inputs are falling.

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Definitions:

Alkene

Hydrocarbons containing at least one carbon-to-carbon double bond, part of the unsaturated compounds.

Hydrocarbon Molecule

An organic compound consisting entirely of hydrogen and carbon atoms.

Triple Bonds

Chemical bonds formed by the sharing of three pairs of electrons between two atoms, characteristic of alkynes in organic chemistry.

Methoxy

A functional group consisting of a methyl group bound to oxygen (-OCH3), commonly found in ethers.