Solved

If a Firm Increases Inputs by 15 Percent and Output

Question 208

Multiple Choice

If a firm increases inputs by 15 percent and output increases by 12.5 percent, the firm is experiencing

A) increasing returns to scale.
B) decreasing returns to scale.
C) constant returns to scale.
D) increasing costs per unit of output.

Related Questions

Q203: If the marginal physical product of more

Q204: Figure 7-4 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 7-4

Q205: The amount of time during which at

Q206: If a firm has increasing returns to

Q207: The short-run average cost curve shows the

Q209: The firm's average cost curve is the

Q210: Peter Piper picks a peck of pickled

Q211: The average total cost curve of a

Q212: A production indifference curve shows all combinations

Q213: Figure 7-10 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 7-10