If General Electric finds that when it doubles both its plant size and the amount of associated inputs, its output level does not double, then

A) the law of diminishing returns is in effect.
B) long-run average costs must be decreasing.
C) the firm is experiencing diseconomies of scale.
D) the firm should increase production.
E) the firm is experiencing constant returns to scale.

General Electric

A multinational conglomerate corporation operating in sectors like aviation, power, healthcare, and renewables, among others.

Plant Size

The scale or capacity of a factory or production facility, often measured in terms of productive capability or physical dimensions.

Diseconomies of Scale

An economic concept where increasing production results in higher per unit costs.