18. If a firm increases all of its inputs by 10 percent and its output increases by 10 percent, then: A) it is encountering diseconomies of scale. it is encountering economies of scale. it is encountering constant returns to scale. the marginal products of all inputs are falling. B) C) D) 6.
18. If a firm increases all of its inputs by 10 percent and its output increases by 10 percent, then: A) it is encountering diseconomies of scale. it is encountering economies of scale. it is encountering constant returns to scale. the marginal products of all inputs are falling. B) C) D) 6.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter7: Production, Costs, And Industry Structure
Section: Chapter Questions
Problem 28RQ: What shape of a long-run average cost curve illustrates economies of scale, constant returns to...
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Question
![18.
If a firm increases all of its inputs by 10 percent and its output
increases by 10 percent, then:
A)
it is encountering diseconomies of scale.
it is encountering economies of scale.
it is encountering constant returns to scale.
the marginal products of all inputs are falling.
B)
C)
D)
6.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Feba56808-c40d-40aa-8992-69519f8ccd69%2F202a98d5-9de2-41ce-ba39-e5c769e5a313%2Fcwslyv.jpeg&w=3840&q=75)
Transcribed Image Text:18.
If a firm increases all of its inputs by 10 percent and its output
increases by 10 percent, then:
A)
it is encountering diseconomies of scale.
it is encountering economies of scale.
it is encountering constant returns to scale.
the marginal products of all inputs are falling.
B)
C)
D)
6.
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