Multiple Choice
Assume a firm is using 6 units of capital and 6 units of labour to produce 6 baskets.Now it doubles both inputs resulting in a new total of 16 baskets being produced.This firm is experiencing
A) diseconomies of scale.
B) increasing costs.
C) decreasing returns to scale.
D) increasing returns to scale.
E) constant returns to scale.
Correct Answer:
Verified
Correct Answer:
Verified
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