Post Utme Elizade University 2020 Economics Question 21

Practice objective / multiple choice question 21 from the 2020 Post Utme Elizade University Economics examination.

Post Utme Elizade University 2020 Economics Objective / Multiple Choice
Question 21 POST_UTME_ELIZADE_UNIVERSITY • 2020 • ECONOMICS • objective

The concept of returns to scale is crucial in unders\tanding the behavior of firms in a market economy. Which of the following best describes the relationship between output and input in the case of increa\sing returns to scale?

Answer Options

A. Output increases at a decrea\sing rate as input increases
Correct Answer B. Output increases at an increa\sing rate as input increases
C. Output increases at a cons\tant rate as input increases
D. Output decreases as input increases
Correct Answer
B
Correct Option:
Output increases at an increa\sing rate as input increases

About This Question

This is Post Utme Elizade University 2020 Economics Question 21. It is one of the objective questions from the 2020 Post Utme Elizade University Economics examination.

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