Post Utme Caleb University 2021 Economics Question 38

Practice objective / multiple choice question 38 from the 2021 Post Utme Caleb University Economics examination.

Post Utme Caleb University 2021 Economics Objective / Multiple Choice
Question 38 POST_UTME_CALEB_UNIVERSITY • 2021 • ECONOMICS • objective

The concept of returns to scale in production theory implies that the output will increase at a rate that is proportional to the increase in input factors. Which of the following is a characteristic of decrea\sing returns to scale?

Answer Options

A. The marginal product of labor decreases as the number of workers increases.
B. The average product of capital increases as the amount of capital increases.
Correct Answer C. The marginal product of capital decreases as the amount of capital increases.
D. The average product of labor increases as the number of workers increases.
Correct Answer
C
Correct Option:
The marginal product of capital decreases as the amount of capital increases.

About This Question

This is Post Utme Caleb University 2021 Economics Question 38. It is one of the objective questions from the 2021 Post Utme Caleb University Economics examination.

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