Which of the Following Is True of a Firm That

Multiple Choice

Which of the following is true of a firm that faces increasing returns to scale?

A) An increase in the quantity of one input will increase output by a greater proportion.
B) As the quantity of all inputs are increased, the average cost of production will increase.
C) A given increase in the quantity of all inputs will increase output by a greater proportion.
D) As the quantity of one input is increased, its marginal product will increase at an increasing rate.
E) As the quantity of one input is increased, the marginal cost of production will decline.