Post Utme Noun 2024 Economics Question 26

Practice objective / multiple choice question 26 from the 2024 Post Utme Noun Economics examination.

Post Utme Noun 2024 Economics Objective / Multiple Choice
Question 26 POST_UTME_NOUN • 2024 • ECONOMICS • objective

The concept of returns to scale in production theory refers to the relationship between the quantity of inputs and the resulting output. If a firm experiences increa\sing returns to scale, what will happen to its average \cost per unit of output?

Answer Options

Correct Answer A. The average \cost per unit of output will decrease.
B. The average \cost per unit of output will increase.
C. The average \cost per unit of output will remain cons\tant.
D. The average \cost per unit of output will fluctuate.
Correct Answer
A
Correct Option:
The average \cost per unit of output will decrease.

About This Question

This is Post Utme Noun 2024 Economics Question 26. It is one of the objective questions from the 2024 Post Utme Noun Economics examination.

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