Post Utme Uniben 2024 Economics Question 16

Practice objective / multiple choice question 16 from the 2024 Post Utme Uniben Economics examination.

Post Utme Uniben 2024 Economics Objective / Multiple Choice
Question 16 POST_UTME_UNIBEN • 2024 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market. If the firm's average \cost curve intersects the demand curve at a point where the firm is producing at its optimal level of output, what can be concluded about the firm's returns to scale?

Answer Options

A. The firm is experiencing decrea\sing returns to scale.
B. The firm is experiencing increa\sing returns to scale.
Correct Answer C. The firm is experiencing cons\tant returns to scale.
D. The firm is experiencing negative returns to scale.
Correct Answer
C
Correct Option:
The firm is experiencing cons\tant returns to scale.

About This Question

This is Post Utme Uniben 2024 Economics Question 16. It is one of the objective questions from the 2024 Post Utme Uniben Economics examination.

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