A Firm Has a Production Function F(x, Y)= 1

Multiple Choice

A firm has a production function f(x, y) = 1.80(x^0.80 +y^0.80) 2 whenever x > 0 and y > 0.When the amounts of both inputs are positive, this firm has

A) decreasing returns to scale.
B) constant returns to scale.
C) increasing returns to scale if x + y > 1 and decreasing returns to scale otherwise.
D) increasing returns to scale.
E) increasing returns to scale if output is less than 1 and decreasing returns to scale if output is greater than 1.