Post Utme Bells University 2020 Economics Question 21

Practice objective / multiple choice question 21 from the 2020 Post Utme Bells University Economics examination.

Post Utme Bells University 2020 Economics Objective / Multiple Choice
Question 21 POST_UTME_BELLS_UNIVERSITY • 2020 • ECONOMICS • objective

Consider a production function with returns to scale. If the production function is homogeneous of degree 2, what is the implication for the production function's behavior as the input factors increase?

Answer Options

A. The production function will exhibit increa\sing returns to scale.
Correct Answer B. The production function will exhibit cons\tant returns to scale.
C. The production function will exhibit decrea\sing returns to scale.
D. The production function will exhibit no returns to scale.
Correct Answer
B
Correct Option:
The production function will exhibit cons\tant returns to scale.

About This Question

This is Post Utme Bells University 2020 Economics Question 21. It is one of the objective questions from the 2020 Post Utme Bells University Economics examination.

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