Multiple Choice
Below is short-run cost data for four different plant sizes.Plant 2 has exactly twice as many inputs as does Plant 1.Plant 3 has exactly three times as many inputs as does Plant 1 and Plant 4 has exactly four times as many inputs as does Plant 1.
-Refer to the information above to answer this question.Given the cost data above,which of the following statements is correct?
A) This firm experiences constant returns to scale.
B) This firm experiences increasing returns to scale.
C) This firm experiences decreasing returns to scale.
D) This firm experiences constant,increasing and decreasing returns to scale.
E) No comment about returns to scale can be made.
Correct Answer:

Verified
Correct Answer:
Verified
Q9: Are diminishing marginal productivity and diseconomies of
Q101: What is meant by the term "economic
Q102: All of the following,except one,are possible explanations
Q104: Below is short-run cost data for four
Q105: In the graph below six short-run average
Q107: Economies of scale is the situation in
Q108: Which of the following is correct in
Q109: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5692/.jpg" alt=" -Refer to Table
Q110: "The SRAC and LRAC curves are both
Q111: All of the following,except one,would result in