Post Utme Afe Babalola University 2020 Commerce Question 30

Practice objective / multiple choice question 30 from the 2020 Post Utme Afe Babalola University Commerce examination.

Post Utme Afe Babalola University 2020 Commerce Objective / Multiple Choice
Question 30 POST_UTME_AFE_BABALOLA_UNIVERSITY • 2020 • COMMERCE • objective

A company's production function is characterized by increasing returns to scale. What is the primary implication of this characteristic?

Answer Options

A. The company's output will increase at a decreasing rate as inputs increase
Correct Answer B. The company's output will increase at an increasing rate as inputs increase
C. The company's output will remain constant as inputs increase
D. The company's output will decrease as inputs increase
Correct Answer
B
Correct Option:
The company's output will increase at an increasing rate as inputs increase

About This Question

This is Post Utme Afe Babalola University 2020 Commerce Question 30. It is one of the objective questions from the 2020 Post Utme Afe Babalola University Commerce examination.

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