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.
Correct Answer:
Verified
Q198: A firm's AC will eventually begin to
Q199: The graph of the average cost curve
A)is
Q200: Table 7-5 Q201: If a firm has increasing returns to Q202: If in some production range average cost Q204: When economies of scale exist, Q205: Whether or not a production process shows Q206: Economies of scale Q207: Figure 7-14 Q208: Constant returns to scale for a firm
A)production costs per
A)require inputs' MPP to fall
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