Refer to Table 10.4.2, which sets out a factory's production function. If the...

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Table 10.4.2

Refer to Table 10.4.2, which sets out a factory's production function. If the factory increases both the number of knitting machines and the number of workers employed from 1 to 2 per day, which of the following situations occurs?

The factory experiences

economies of scale.

0%

constant marginal product of labour.

0%

diseconomies of scale.

0%

constant marginal product of capital.

0%

constant returns to scale.

0%

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