Post Utme Rhema University 2024 Economics Question 21

Practice objective / multiple choice question 21 from the 2024 Post Utme Rhema University Economics examination.

Post Utme Rhema University 2024 Economics Objective / Multiple Choice
Question 21 POST_UTME_RHEMA_UNIVERSITY • 2024 • ECONOMICS • objective

A firm's average total \cost (ATC) curve is U-shaped. If the firm's short-run ATC curve is initially downward sloping, what can be inferred about the firm's production techno\logy?

Answer Options

A. The firm's production techno\logy exhibits increa\sing returns to scale.
Correct Answer B. The firm's production techno\logy exhibits decrea\sing returns to scale.
C. The firm's production techno\logy exhibits cons\tant returns to scale.
D. The firm's production techno\logy exhibits diminishing returns to scale.
Correct Answer
B
Correct Option:
The firm's production techno\logy exhibits decrea\sing returns to scale.

About This Question

This is Post Utme Rhema University 2024 Economics Question 21. It is one of the objective questions from the 2024 Post Utme Rhema University Economics examination.

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