Refer to Scenario 7.3. Suppose that your firm decides to double its output to 400. To achieve this level of output the firm will have to:

A) exactly double its inputs.
B) more than double its inputs.
C) less than double its inputs.

Production Function

An economic model that describes the relationship between inputs used in production and the resulting output.

Double Its Inputs

The act of a firm increasing the amount of inputs used in production, such as labor and capital, by two times.

Level of Output

The quantity of goods or services produced by a firm or economy during a specific time period.