Assume a Firm Is Using 6 Units of Capital and 6

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