If all resources used in the production of a product are increased by 20 percent andoutput increases by 20 percent, then there must be:

Question

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increasing average total costs.

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economies of scale.

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diseconomies of scale.

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constant returns to scale.

1.	If all resources used in the production of a product are increased by 20 percent andoutput increases by 20 percent, then there must be:
A.	economies of scale.
B.	diseconomies of scale.
C.	constant returns to scale.
D.	increasing average total costs.
Answer» D. increasing average total costs.

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