Economics · May / June 2016 · Paper 12 · Question 14

The table shows the units of factors of production that a firm needs to employ for two different levels of output. [table: land 6, labour 8, capital 4, output 100; land 9, labour 12, capital 6, output 200] What is the firm experiencing?

1. Aconstant returns to scale
2. Beconomies of scale
3. Cexternal diseconomies of scale
4. Dexternal economies of scale

As printed in the paper