Use the Following Table to Answer the Questions

question 43

Multiple Choice

Use the following table to answer the questions :
Table 7-4 shows the shows the quantities of labor and capital required to produce various levels of output.

-Refer to Table 7-4.When the firm expands from 6 units of capital and 2 units of labor
To 12 units of capital and 4 units of labor,the production function exhibits:

• A)increasing returns to scale.
• B)constant returns to scale.
• C)decreasing returns to scale.
• D)diminishing marginal returns.

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