Post Utme Uniben 2022 Economics Question 16

Practice objective / multiple choice question 16 from the 2022 Post Utme Uniben Economics examination.

Post Utme Uniben 2022 Economics Objective / Multiple Choice
Question 16 POST_UTME_UNIBEN • 2022 • ECONOMICS • objective

A firm is operating under cons\tant returns to scale. If it increases its output by 20% and its input by 20%, what will be the effect on its average \cost per unit?

Answer Options

A. The average \cost per unit will decrease
B. The average \cost per unit will increase
Correct Answer C. The average \cost per unit will remain the same
D. The effect on average \cost per unit is uncertain
Correct Answer
C
Correct Option:
The average \cost per unit will remain the same

About This Question

This is Post Utme Uniben 2022 Economics Question 16. It is one of the objective questions from the 2022 Post Utme Uniben Economics examination.

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