A firm called Anonymous of Toronto makes corrugated cardboard boxes. It decides to increases all of its inputs by 10 percent and as a consequence its output of corrugated cardboard boxes increases by 9 percent, then Multiple Cholce Anonymous is encountering constant returns to scale. Anonymous is encountering diseconomles of scale. Anonymous' long-run ATC curve will be falling. Anonymous is encountering economles of scale.
A firm called Anonymous of Toronto makes corrugated cardboard boxes. It decides to increases all of its inputs by 10 percent and as a consequence its output of corrugated cardboard boxes increases by 9 percent, then Multiple Cholce Anonymous is encountering constant returns to scale. Anonymous is encountering diseconomles of scale. Anonymous' long-run ATC curve will be falling. Anonymous is encountering economles of scale.
Chapter11: The Firm: Production And Costs
Section: Chapter Questions
Problem 20P
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