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Suppose That a Firm Increases Its Inputs by 10% and Observes

Question 140

Multiple Choice

Suppose that a firm increases its inputs by 10% and observes a 13% increase in output.The firm is


A) experiencing increasing returns to scale.
B) experiencing constant returns to scale.
C) violating the law of diminishing marginal returns.
D) increasing its average cost.
E) reducing its total cost.

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