Post Utme Madonna University 2017 Economics Question 26

Practice objective / multiple choice question 26 from the 2017 Post Utme Madonna University Economics examination.

Post Utme Madonna University 2017 Economics Objective / Multiple Choice
Question 26 POST_UTME_MADONNA_UNIVERSITY • 2017 • ECONOMICS • objective

A firm's average total \cost curve is U-shaped. What does this imply about the firm's production techno\logy?

Answer Options

A. The firm's production techno\logy is characterized by increa\sing returns to scale.
Correct Answer B. The firm's production techno\logy is characterized by decrea\sing returns to scale.
C. The firm's production techno\logy is characterized by cons\tant returns to scale.
D. The firm's production techno\logy is characterized by a fixed coefficient of production.
Correct Answer
B
Correct Option:
The firm's production techno\logy is characterized by decrea\sing returns to scale.

About This Question

This is Post Utme Madonna University 2017 Economics Question 26. It is one of the objective questions from the 2017 Post Utme Madonna University Economics examination.

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