If Microsoft finds that a 15 percent increase in all inputs results in a 15 percent increase in total output, the firm realizes
A) diseconomies of scale
B) economies of scale
C) constant returns to scale
D) increasing marginal productivity

Question

Quizplus · Accepted Answer

Constant returns to scale occur when an increase in inputs leads to a proportional increase in outputs, as described in the scenario.

If Microsoft Finds That a 15 Percent Increase in All