CUET Economics 2025 28 May Shift 1 PYQs

Choose the correct statements in respect of returns to scale.

(A) Decreasing returns to scale occur when a proportional increase in all inputs is less than output.

(B) Constant returns to scale occur when a proportional increase in all inputs is the same as output.

(C) In the long run, factors of production are increased by the same proportion, or factors are scaled up.

(D) Increasing returns to scale occur when a proportional increase in all inputs is less than output.

Choose the correct answer from the options given below:

In the short run, the shape of marginal cost, average variable cost and short run average cost curves are:

________ of an input is defined as the change in output per unit of change in the input when all other inputs are remain constant.