Suppose Farmer Smith Hires 4 Workers and Leases 2 Tractors

Multiple Choice

Suppose Farmer Smith hires 4 workers and leases 2 tractors and 15 hectares of farmland for one growing season,and produces 120 000 bushels of crop.The next year he hires 8 workers and leases 4 tractors and 30 hectares of farmland,and produces 210 000 bushels of crop.This firm (the farmer) is exhibiting ________ returns to scale.

A) decreasing
B) increasing
C) constant
D) marginal
E) variable