If a firm doubles inputs and produces three times the output, then there are
A)constant returns to scale.
B)increasing marginal returns.
C)decreasing returns to scale.
D)increasing returns to scale.

Question

Quizplus · Accepted Answer

When the firm doubles inputs and produces three times the output, it means that the firm is increasing its output more than proportionally to the increase in inputs. This is an indication of increasing returns to scale.

If a Firm Doubles Inputs and Produces Three Times the Output