Post Utme Lasu 2017 Economics Question 21

Practice objective / multiple choice question 21 from the 2017 Post Utme Lasu Economics examination.

Post Utme Lasu 2017 Economics Objective / Multiple Choice
Question 21 POST_UTME_LASU • 2017 • ECONOMICS • objective

A firm is producing a good with a cons\tant returns to scale production function. If the price of the good decreases by 20%, what will be the effect on the firm's output?

Answer Options

A. The firm's output will increase by 20%.
B. The firm's output will decrease by 20%.
Correct Answer C. The firm's output will remain unchanged.
D. The firm's output will increase by 10%.
Correct Answer
C
Correct Option:
The firm's output will remain unchanged.

About This Question

This is Post Utme Lasu 2017 Economics Question 21. It is one of the objective questions from the 2017 Post Utme Lasu Economics examination.

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