Post Utme Uniport 2020 Economics Question 11

Practice objective / multiple choice question 11 from the 2020 Post Utme Uniport Economics examination.

Post Utme Uniport 2020 Economics Objective / Multiple Choice
Question 11 POST_UTME_UNIPORT • 2020 • ECONOMICS • objective

The concept of returns to scale is crucial in unders\tanding the production function of a firm. Which of the following statements best describes the law of diminishing returns?

Answer Options

Correct Answer A. As the quantity of a variable input increases, the marginal product of that input will eventually decrease.
B. The law of diminishing returns is a concept that applies only to perfect competition.
C. The law of diminishing returns is a concept that applies only to monopolistic competition.
D. The law of diminishing returns is a concept that applies only to a firm's short-run production function.
Correct Answer
A
Correct Option:
As the quantity of a variable input increases, the marginal product of that input will eventually decrease.

About This Question

This is Post Utme Uniport 2020 Economics Question 11. It is one of the objective questions from the 2020 Post Utme Uniport Economics examination.

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