Post Utme Joseph Ayo Babalola University 2020 Economics Question 31

Practice objective / multiple choice question 31 from the 2020 Post Utme Joseph Ayo Babalola University Economics examination.

Post Utme Joseph Ayo Babalola University 2020 Economics Objective / Multiple Choice
Question 31 POST_UTME_JOSEPH_AYO_BABALOLA_UNIVERSITY • 2020 • ECONOMICS • objective

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

Answer Options

A. Output increases at a decrea\sing rate compared to the increase in input factors.
Correct Answer B. Output increases at an increa\sing rate compared to the increase in input factors.
C. Output increases at a cons\tant rate compared to the increase in input factors.
D. Output decreases at an increa\sing rate compared to the increase in input factors.
Correct Answer
B
Correct Option:
Output increases at an increa\sing rate compared to the increase in input factors.

About This Question

This is Post Utme Joseph Ayo Babalola University 2020 Economics Question 31. It is one of the objective questions from the 2020 Post Utme Joseph Ayo Babalola University Economics examination.

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