Economics · May / June 2016 · Paper 11 · Question 14
2281Firms
The table shows the units of factors of production that a firm needs to employ for two different levels of output. | land | labour | capital | output | | 5 | 2 | 4 | 100 | | 10 | 4 | 8 | 150 | What is the firm experiencing?
- Aconstant returns to scale
- Bdiseconomies of scale
- Cexternal diseconomies of scale
- Dexternal economies of scale
As printed in the paper
Show the answer
Correct answer: B. diseconomies of scale
Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.