A Firm Uses Only Two Inputs to Produce Its Output

Multiple Choice

A firm uses only two inputs to produce its output.These inputs are perfect substitutes.This firm

A) must have increasing returns to scale.
B) must have constant returns to scale.
C) could have increasing returns to scale, constant returns to scale, or decreasing returns to scale.
D) must have decreasing returns to scale.
E) must have decreasing returns to scale in the short run and constant returns to scale in the long run.