JAMB Economics 2012 Objective — Question 24

Question 24 of 50 from the Joint Admissions and Matriculation Board (JAMB) Economics 2012 Objective paper, with the correct answer and a full explanation.

If a firm doubles all inputs in the long run and the output is less than doubled, this results in

A. diminishing returns to scale
B. constant returns to scale
C. increasing returns to scale
D. decreasing returns to scaleCorrect

Explanation

When all inputs are doubled and output increased by less than double, the firm experienced decreasing return to scale.

Sign up free to unlock

Score tracking
Practice history
Saved questions
Progress dashboard
Personalized sessions
Weak-topic breakdown

…and/or go further with premium services and No Ads.

Create free account

More questions from Economics 2012 Objective More Economics past papers