Solved

If a Firm Increases All of Its Inputs by 10

Question 365

Multiple Choice

If a firm increases all of its inputs by 10 percent and its output increases by 15 percent, then


A) it is encountering diseconomies of scale.
B) it is encountering economies of scale.
C) the law of diminishing returns is taking hold.
D) the firm's long-run ATC curve will be rising.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents