Limited access

Upgrade to access all content for this subject

In the long run, a firm increases its inputs by $15\%$, and its outputs increase by $25\%$. Which of the following is TRUE?

A

The firm is experiencing constant returns to scale.

B

The firm is experiencing diseconomies of scale.

C

The firms per-unit costs are increasing.

D

The firm's total costs are increasing.

E

The firm is experiencing decreasing returns to scale.

Select an assignment template