When the marginal costs of adding workers to a firm are increasing, that firm is experiencing ______.

As output increases, the distance between average total cost and average variable cost increases

Indicate whether the statement is true or false

Constant returns to scale implies that if N and K both increase by 3% that

A) output (Y) will increase by 3%. B) Y/N will increase by 3%. C) Y/N will increase by less than 3%. D) the capital-labor ratio will increase by 3%.