Assume a Firm Is Using 10 Units of Capital and 10

Multiple Choice

Assume a firm is using 10 units of capital and 10 units of labour to produce 10 widgets per hour.By doubling both inputs the result is a doubling of output.This firm is experiencing

A) constant returns to scale.
B) economies of scale.
C) diseconomies of scale.
D) increasing costs.
E) decreasing returns.