If a firm triples all its inputs and output triples as a result,then the firm
A) is experiencing increasing returns to scale.
B) is experiencing economies of scale.
C) is experiencing constant returns to scale.
D) will have lower total costs.
E) will have lower average total costs.

Question

Quizplus · Accepted Answer

When a firm triples its inputs and the output also triples, it is experiencing constant returns to scale, meaning the output increases proportionally with the increase in inputs.

If a Firm Triples All Its Inputs and Output Triples