Question: In a production process, all inputs are increased by 10%; butoutput increases less than 10%. This means that the firmexperiences A) decreasing returns to scale.

In a production process, all inputs are increased by 10%; butoutput increases less than 10%. This means that the firmexperiences

A) decreasing returns to scale.

B) constant returns to scale.

C) increasing returns to scale.

D) negative returns to scale

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