If a firm doubles all of its inputs and its output triples, it is said to be experiencing
A) diminishing marginal returns.
B) increasing marginal returns.
C) diseconomies of scale.
D) economies of scale.
E) constant average costs.

Question

Quizplus · Accepted Answer

When a firm doubles its inputs and its output more than doubles (in this case, triples), it is experiencing economies of scale, as it is able to produce more efficiently with increased input.

If a Firm Doubles All of Its Inputs and Its