Post Utme Lasu 2018 Economics Question 6

Practice objective / multiple choice question 6 from the 2018 Post Utme Lasu Economics examination.

Post Utme Lasu 2018 Economics Objective / Multiple Choice
Question 6 POST_UTME_LASU • 2018 • ECONOMICS • objective

A firm is operating on a long-run average \cost curve. If the firm's output increases from 100 units to 200 units, and the average \cost decreases from ₦100 to ₦80, what can be concluded about the firm's returns to scale?

Answer Options

A. Decrea\sing returns to scale
Correct Answer B. Increa\sing returns to scale
C. Cons\tant returns to scale
D. No conclusion can be drawn
Correct Answer
B
Correct Option:
Increa\sing returns to scale

About This Question

This is Post Utme Lasu 2018 Economics Question 6. It is one of the objective questions from the 2018 Post Utme Lasu Economics examination.

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