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