FIGURE 8-1
-Refer to Figure 8-1.For which of the four firms in the figure is output increasing more than in proportion to inputs for all output levels?
A)Firm A
B)Firm B
C)Firm C
D)Firm D
E)none of the four firms

Question

FIGURE 8-1
-Refer to Figure 8-1.For which of the four firms in the figure is output increasing more than in proportion to inputs for all output levels?
A)Firm A 
B)Firm B 
C)Firm C 
D)Firm D 
E)none of the four firms

Quizplus · Accepted Answer

Firm A has increasing returns to scale because its isoquants are convex to the origin.

FIGURE 8-1 -Refer to Figure 8-1.For Which of the Four Firms in Firms