If a simultaneous and equal percentage decrease in the use of all physical inputs leads to a larger percentage decrease in physical output, a firm’s production function is said to exhibit (A). decreasing returns to scale. (B) constant returns to scale. (C) increasing returns to scale. (D) diseconomies of scale.

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If a simultaneous and equal percentage decrease in the use of all physical inputs leads to a larger percentage
decrease in physical output, a firm’s production function is said to exhibit (A). decreasing returns to scale. (B)
constant returns to scale. (C) increasing returns to scale. (D) diseconomies of scale.

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