If a firm doubles its output and its cost increase by 60%, the firm is…

If a firm doubles its output and its cost increase by 60%, the firm is experiencing
  • A.
    increase cost
  • B.
    economies of scale
  • C.
    decreasing returns
  • D.
    decreasing cost
  • E.
    none of the above
Correct Answer: Option B
Explanation
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