If a firm increases all its inputs by 10 percent and its output increases by 15 percent, the firm is experiencing diseconomies of scale.

Name: If a firm increases all its inputs by 10 percent and its output increases by 15 percent, the firm is experiencing diseconomies of scale.
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Question

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If the firm's output increases more than its inputs, it is experiencing economies of scale. In this case, the output increased by a higher percentage than the inputs, indicating economies of scale.

If a Firm Increases All Its Inputs by 10 Percent