Post Utme Rsu 2022 Economics Question 14

Practice objective / multiple choice question 14 from the 2022 Post Utme Rsu Economics examination.

Post Utme Rsu 2022 Economics Objective / Multiple Choice
Question 14 POST_UTME_RSU • 2022 • ECONOMICS • objective

Consider a production function that exhibits increa\sing returns to scale. If the firm's output increases by 20% and the input increases by 10%, what will be the effect on the firm's average product?

Answer Options

Correct Answer A. The average product will increase
B. The average product will decrease
C. The average product will remain unchanged
D. The effect on the average product is ambiguous
Correct Answer
A
Correct Option:
The average product will increase

About This Question

This is Post Utme Rsu 2022 Economics Question 14. It is one of the objective questions from the 2022 Post Utme Rsu Economics examination.

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