Post Utme Mountain Top University 2023 Economics Question 33

Practice objective / multiple choice question 33 from the 2023 Post Utme Mountain Top University Economics examination.

Post Utme Mountain Top University 2023 Economics Objective / Multiple Choice
Question 33 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2023 • ECONOMICS • objective

A firm is considering two production techno\logies: one with a cons\tant returns to scale (CRS) and the other with a decrea\sing returns to scale (DRS). If the firm's current output is 100 units, and the CRS techno\logy requires 10 units of labor and 5 units of capital, while the DRS techno\logy requires 15 units of labor and 10 units of capital, which techno\logy is more efficient?

Answer Options

Correct Answer A. CRS techno\logy is more efficient
B. DRS techno\logy is more efficient
C. Both techno\logies are equally efficient
D. Neither techno\logy is efficient
Correct Answer
A
Correct Option:
CRS techno\logy is more efficient

About This Question

This is Post Utme Mountain Top University 2023 Economics Question 33. It is one of the objective questions from the 2023 Post Utme Mountain Top University Economics examination.

View More Post Utme Mountain Top University 2023 Economics Questions More Post Utme Mountain Top 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