Post Utme Esut 2022 Economics Question 21

Practice objective / multiple choice question 21 from the 2022 Post Utme Esut Economics examination.

Post Utme Esut 2022 Economics Objective / Multiple Choice
Question 21 POST_UTME_ESUT • 2022 • ECONOMICS • objective

The concept of returns to scale in production theory implies that as the input of a variable factor increases, the output increases at a rate that is proportional to the increase in the input. Which of the following statements best describes the relationship between the input and output in the case of increa\sing returns to scale?

Answer Options

A. The output increases at a decrea\sing rate compared to the increase in the input.
Correct Answer B. The output increases at an increa\sing rate compared to the increase in the input.
C. The output increases at a cons\tant rate compared to the increase in the input.
D. The output remains cons\tant despite the increase in the input.
Correct Answer
B
Correct Option:
The output increases at an increa\sing rate compared to the increase in the input.

About This Question

This is Post Utme Esut 2022 Economics Question 21. It is one of the objective questions from the 2022 Post Utme Esut Economics examination.

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