Post Utme Covenant University 2023 Economics Question 16

Practice objective / multiple choice question 16 from the 2023 Post Utme Covenant University Economics examination.

Post Utme Covenant University 2023 Economics Objective / Multiple Choice
Question 16 POST_UTME_COVENANT_UNIVERSITY • 2023 • ECONOMICS • objective

The concept of returns to scale in production theory suggests that as the input factors increase, the output will increase at a rate that is proportional to the increase in inputs. However, this is not always the case. What is the correct interpretation of the returns to scale concept?

Answer Options

A. Returns to scale is a measure of the change in output resulting from a change in input factors.
B. Returns to scale is a measure of the change in input factors resulting from a change in output.
Correct Answer C. Returns to scale is a measure of the proportionality between input and output factors.
D. Returns to scale is a measure of the change in output resulting from a change in input factors, but only in the short run.
Correct Answer
C
Correct Option:
Returns to scale is a measure of the proportionality between input and output factors.

About This Question

This is Post Utme Covenant University 2023 Economics Question 16. It is one of the objective questions from the 2023 Post Utme Covenant University Economics examination.

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