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.