JAMB Economics 2021 Objective — Question 26
Question 26 of 40 from the Joint Admissions and Matriculation Board (JAMB) Economics 2021 Objective paper, with the correct answer and a full explanation.
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26. If input and output increase or decrease at the same rate then the firm is a. Increasing return to scale b. Decreasing return to scale c. Constant return to scale d. None of the above
- A. Increasing return to scale
- B. Decreasing return to scale
- C. Constant return to scaleCorrect
- D. None of the above
Explanation
When output changes in exact proportion to the change in inputs, the firm exhibits constant returns to scale.
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