Post Utme Unilorin 2019 Economics Question 11

Practice objective / multiple choice question 11 from the 2019 Post Utme Unilorin Economics examination.

Post Utme Unilorin 2019 Economics Objective / Multiple Choice
Question 11 POST_UTME_UNILORIN • 2019 • ECONOMICS • objective

The concept of returns to scale in production theory suggests that as the scale of production increases, the marginal product of labor will eventually decrease. Which of the following is a correct example of a firm that exhibits decrea\sing returns to scale?

Answer Options

A. A firm that produces 100 units of output with 10 units of labor
B. A firm that produces 1000 units of output with 100 units of labor
Correct Answer C. A firm that produces 1000 units of output with 10 units of labor
D. A firm that produces 100 units of output with 100 units of labor
Correct Answer
C
Correct Option:
A firm that produces 1000 units of output with 10 units of labor

About This Question

This is Post Utme Unilorin 2019 Economics Question 11. It is one of the objective questions from the 2019 Post Utme Unilorin Economics examination.

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