As the firm moves from Point A toward Point B, it 8- is experiencing 7. O constant returns to scale. 6JA decreasing returns to scale. 5- increasing returns to scale. 4. 3. LRATC As the firm moves from Point B toward Point C, it 2. is experiencing 1- O decreasing returns to scale. constant returns to scale. 2. 3 7. 8. 9. 10 Output O increasing returns to scale. As the firm moves from Point C toward Point D, it is experiencing O decreasing returns to scale. increasing returns to scale. constant returns to scale. 6. %24 4.