Post Utme Aaua 2017 Economics Question 21

Practice objective / multiple choice question 21 from the 2017 Post Utme Aaua Economics examination.

Post Utme Aaua 2017 Economics Objective / Multiple Choice
Question 21 POST_UTME_AAUA • 2017 • ECONOMICS • objective

The concept of returns to scale in production theory implies that as the input of a variable factor increases, the output of the firm will increase at a rate that is proportional to the increase in the input. Which of the following is a characteristic of a firm operating under increa\sing returns to scale?

Answer Options

A. The average product of labor increases as the firm expands its production
B. The marginal product of labor decreases as the firm expands its production
Correct Answer C. The total product of labor increases at a decrea\sing rate as the firm expands its production
D. The average product of labor decreases as the firm expands its production
Correct Answer
C
Correct Option:
The total product of labor increases at a decrea\sing rate as the firm expands its production

About This Question

This is Post Utme Aaua 2017 Economics Question 21. It is one of the objective questions from the 2017 Post Utme Aaua Economics examination.

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