Post Utme Caleb University 2017 Economics Question 36

Practice objective / multiple choice question 36 from the 2017 Post Utme Caleb University Economics examination.

Post Utme Caleb University 2017 Economics Objective / Multiple Choice
Question 36 POST_UTME_CALEB_UNIVERSITY • 2017 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market. If the firm's average total \cost (ATC) curve is U-shaped, what can be concluded about the firm's production techno\logy?

Answer Options

A. The firm's production techno\logy is characterized by increa\sing returns to scale.
B. The firm's production techno\logy is characterized by decrea\sing returns to scale.
Correct Answer C. The firm's production techno\logy is characterized by cons\tant returns to scale.
D. The firm's production techno\logy is characterized by increa\sing marginal \costs.
Correct Answer
C
Correct Option:
The firm's production techno\logy is characterized by cons\tant returns to scale.

About This Question

This is Post Utme Caleb University 2017 Economics Question 36. It is one of the objective questions from the 2017 Post Utme Caleb University Economics examination.

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