Post Utme Pan Atlantic University 2019 Economics Question 1

Practice objective / multiple choice question 1 from the 2019 Post Utme Pan Atlantic University Economics examination.

Post Utme Pan Atlantic University 2019 Economics Objective / Multiple Choice
Question 1 POST_UTME_PAN-ATLANTIC_UNIVERSITY • 2019 • ECONOMICS • objective

The concept of returns to scale in production theory refers to the change in the quantity of output that occurs when all inputs are increased by the same proportion. Which of the following statements best describes the law of diminishing returns?

Answer Options

Correct Answer A. As the quantity of labor increases, the marginal product of labor decreases.
B. As the quantity of capital increases, the marginal product of capital increases.
C. As the quantity of output increases, the average product of labor decreases.
D. As the quantity of inputs increases, the total product of labor increases.
Correct Answer
A
Correct Option:
As the quantity of labor increases, the marginal product of labor decreases.

About This Question

This is Post Utme Pan Atlantic University 2019 Economics Question 1. It is one of the objective questions from the 2019 Post Utme Pan Atlantic University Economics examination.

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