The following table shows the various combinations of labour (L) and capital (K) and the resulting outputs
| Combination | Output (units) |
| 1L + 1K | 200 |
| 2L + 2K | 400 |
| 3L + 3K | 600 |
| 4L + 4K | 800 |
| 5L + 5K | 1000 |
A. Constant returns to scale
B. Increasing returns to scale
C. Diminishing returns to scale
D. None of the above
Answer: Option A
This Question Belongs to Management >> Managerial Economics
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The emphasis of managerial economics is on
A. Bonus theory
B. Normative theory
C. System theory
D. Accounting theory
Which is not the subject of Managerial Economics?
A. Accounting Theory
B. Pricing Decision, Policies and Practices
C. Capital Management
D. Profit Management
Which is not covered under the scope of managerial economics?
A. Profit management
B. Accounting theory
C. Pricing policies
D. Production analysis
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