WAEC Economics 2019 Objective — Question 18
Question 18 of 50 from the West African Examinations Council (WAEC) Economics 2019 Objective paper, with the correct answer and a full explanation.
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When an increase in inputs leads to more than a proportionate increase in output, there is
- A. decreasing returns to scale
- B. increase in marginal product
- C. increasing returns to scaleCorrect
- D. constant returns to scale
Explanation
When output increases at a larger proportion than the increase in inputs, the firm is experiencing increasing returns to scale.
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