If a firm increases all of its inputs by 10 percent and its output increases by 10 percent, then

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When a firm increases all its inputs by the same percentage (e.g. 10%) and its output increases by the same percentage, it is experiencing constant returns to scale. This means that the firm is able to maintain the same level of efficiency as it scales up its production. If the output had increased more than 10%, then the firm would have been experiencing economies of scale, while if the output had increased less than 10%, the firm would have been experiencing diseconomies of scale. The marginal products of inputs may or may not be falling depending on the specific production function the firm is using.

If a Firm Increases All of Its Inputs by 10