Question: If a 2 5 % increase in all inputs increases a firm s output by 1 5 % , then its long run average cost

If a 25% increase in all inputs increases a firms output by 15%, then its long run average cost curve, LRAC, is _____ because the firm is experiencing _____.
Group of answer choices
upward sloping; decreasing returns to scale (DRTS).
upward sloping; increasing returns to scale (IRTS).
horizontal; constant returns to scale (CRTS).
downward sloping; increasing returns to scale (IRTS).
downward sloping; decreasing returns to scale (DRTS).
vertical; constant returns to scale (CRTS).

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