In macroeconomic theory, which is not justification for taking the price level as fixed. Option 1: Law of diminishing returns will not apply. Option 2: Assuming an economy with unused resources. Option 3: Additional output can be produced without increasing marginal cost. Option 4: When the quantity produced changes, price does vary.

The answer is 'When the quantity produced changes, price does vary.'. View full solution:

CUET Economics - In macroeconomic theory, which is not justification for taking the price level as fixed. | PYQs + Solutions

CUET Economics 2025 27 May Shift 2

Macro

Medium

Law of diminishing returns will not apply.

Assuming an economy with unused resources.

Additional output can be produced without increasing marginal cost.

When the quantity produced changes, price does vary.

✅ Correct Option: 4