Post Utme Elizade University 2018 Economics Question 35

Practice objective / multiple choice question 35 from the 2018 Post Utme Elizade University Economics examination.

Post Utme Elizade University 2018 Economics Objective / Multiple Choice
Question 35 POST_UTME_ELIZADE_UNIVERSITY • 2018 • ECONOMICS • objective

A farmer is considering planting a crop that requires an initial investment of ₦1,000 and has a variable \cost of ₦200 per unit. The farmer expects to sell 50 units of the crop at a price of ₦500 per unit. U\sing the concept of returns to scale, determine whether the farmer should plant the crop.

Answer Options

Correct Answer A. The farmer should plant the crop because the returns to scale are increa\sing.
B. The farmer should not plant the crop because the returns to scale are decrea\sing.
C. The farmer should plant the crop because the returns to scale are cons\tant.
D. The farmer should not plant the crop because the returns to scale are perfectly elastic.
Correct Answer
A
Correct Option:
The farmer should plant the crop because the returns to scale are increa\sing.

About This Question

This is Post Utme Elizade University 2018 Economics Question 35. It is one of the objective questions from the 2018 Post Utme Elizade University Economics examination.

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