Post Utme Unilorin 2025 Economics Question 9

Practice objective / multiple choice question 9 from the 2025 Post Utme Unilorin Economics examination.

Post Utme Unilorin 2025 Economics Objective / Multiple Choice
Question 9 POST_UTME_UNILORIN • 2025 • ECONOMICS • objective

A firm's production function is given by Q = 2L^0.5K^0.5. U\sing the concept of returns to scale, explain why the firm's average product of labor increases as it increases its labor input.

Answer Options

A. Due to the law of diminishing marginal returns.
Correct Answer B. Because the firm is able to take advantage of economies of scale.
C. As a result of the firm's ability to negotiate better prices with suppliers.
D. Due to the firm's increased bargaining power with customers.
Correct Answer
B
Correct Option:
Because the firm is able to take advantage of economies of scale.

About This Question

This is Post Utme Unilorin 2025 Economics Question 9. It is one of the objective questions from the 2025 Post Utme Unilorin Economics examination.

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