Which of the following statements is correct if a firm's capacity output increases from 400 to 800 and its total costs rise from $60,000 to $110,000?
A)The firm is experiencing constant returns to scale.
B)The firm is experiencing diseconomies of scale.
C)The firm is experiencing economies of scale.
D)The firm's long-run average cost must have decreased,but its short-run average cost could have either decreased or increased.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is correct if a firm's capacity output increases from 400 to 800 and its total costs rise from $60,000 to $110,000?
A)The firm is experiencing constant returns to scale.
B)The firm is experiencing diseconomies of scale.
C)The firm is experiencing economies of scale.
D)The firm's long-run average cost must have decreased,but its short-run average cost could have either decreased or increased.

Which of the Following Statements Is Correct If a Firm's