Post Utme Lead City University 2025 Economics Question 39

Practice objective / multiple choice question 39 from the 2025 Post Utme Lead City University Economics examination.

Post Utme Lead City University 2025 Economics Objective / Multiple Choice
Question 39 POST_UTME_LEAD_CITY_UNIVERSITY • 2025 • ECONOMICS • objective

A firm is considering two production techno\logies: one that uses a lot of labor and another that uses a lot of capital. If the firm's production function is characterized by increa\sing returns to scale, which techno\logy should it choose?

Answer Options

A. The firm should choose the techno\logy that uses a lot of labor.
B. The firm should choose the techno\logy that uses a lot of capital.
Correct Answer C. The firm should choose the techno\logy that uses a combination of labor and capital.
D. The firm should not choose either techno\logy.
Correct Answer
C
Correct Option:
The firm should choose the techno\logy that uses a combination of labor and capital.

About This Question

This is Post Utme Lead City University 2025 Economics Question 39. It is one of the objective questions from the 2025 Post Utme Lead City University Economics examination.

View More Post Utme Lead City University 2025 Economics Questions More Post Utme Lead City University Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support