Post Utme Eksu 2024 Economics Question 31

Practice objective / multiple choice question 31 from the 2024 Post Utme Eksu Economics examination.

Post Utme Eksu 2024 Economics Objective / Multiple Choice
Question 31 POST_UTME_EKSU • 2024 • ECONOMICS • objective

A firm's average total \cost (ATC) curve is U-shaped, with ATC initially decrea\sing and then increa\sing. What is the primary reason for this U-shape?

Answer Options

A. Economies of scale
B. Diseconomies of scale
C. Increa\sing returns to scale
Correct Answer D. Decrea\sing returns to scale
Correct Answer
D
Correct Option:
Decrea\sing returns to scale

About This Question

This is Post Utme Eksu 2024 Economics Question 31. It is one of the objective questions from the 2024 Post Utme Eksu Economics examination.

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