Assume a Firm Is Using 10 Units of Labour and 10

Multiple Choice

Assume a firm is using 10 units of labour and 10 units of capital and is producing 10 units of output per hour. Now both inputs are doubled, resulting in output rising to 18 units per hour. The firm is experiencing

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