Post Utme Al Hikmah University 2022 Economics Question 27

Practice objective / multiple choice question 27 from the 2022 Post Utme Al Hikmah University Economics examination.

Post Utme Al Hikmah University 2022 Economics Objective / Multiple Choice
Question 27 POST_UTME_AL-HIKMAH_UNIVERSITY • 2022 • ECONOMICS • objective

A firm's production function exhibits increa\sing returns to scale. What does this imply about the firm's ability to increase its output?

Answer Options

A. The firm can increase its output without increa\sing its inputs.
B. The firm can increase its output by increa\sing its inputs, but at a decrea\sing rate.
Correct Answer C. The firm can increase its output by increa\sing its inputs, but at an increa\sing rate.
D. The firm cannot increase its output without increa\sing its inputs.
Correct Answer
C
Correct Option:
The firm can increase its output by increa\sing its inputs, but at an increa\sing rate.

About This Question

This is Post Utme Al Hikmah University 2022 Economics Question 27. It is one of the objective questions from the 2022 Post Utme Al Hikmah University Economics examination.

View More Post Utme Al Hikmah University 2022 Economics Questions More Post Utme Al Hikmah University Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support