Post Utme Ksu 2018 Economics Question 21

Practice objective / multiple choice question 21 from the 2018 Post Utme Ksu Economics examination.

Post Utme Ksu 2018 Economics Objective / Multiple Choice

Question 21 POST_UTME_KSU • 2018 • ECONOMICS • objective

The returns to scale in a production function can be classified into three categories: increa\sing, decrea\sing, and cons\tant. Which of the following statements is true about the returns to scale?

A. Increa\sing returns to scale occurs when the output increases proportionally with the increase in input factors.

B. Decrea\sing returns to scale occurs when the output decreases proportionally with the increase in input factors.

Correct Answer C. Cons\tant returns to scale occurs when the output increases proportionally with the increase in input factors.

D. Cons\tant returns to scale occurs when the output decreases proportionally with the increase in input factors.

Correct Answer

Correct Option:

Cons\tant returns to scale occurs when the output increases proportionally with the increase in input factors.

This is Post Utme Ksu 2018 Economics Question 21. It is one of the objective questions from the 2018 Post Utme Ksu Economics examination.

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