Which of the following states that "The marginal product of a factor input initially rises with its employment level, but after reaching a certain level of employment, it starts falling"? Option 1: Diminishing Returns to Scale. Option 2: Law of Variable Proportions. Option 3: Law of Diminishing Marginal Rate of Substitution. Option 4: Increasing Returns to Scale.

The answer is 'Law of Variable Proportions.'. View full solution:

CUET Economics - Which of the following states that "The marginal product of a factor input initially rises with its employment level, but after reaching a certain level of employment, it starts falling"? | PYQs + Solutions

CUET Economics 2025 28 May Shift 2

Micro

Easy

Diminishing Returns to Scale.

Law of Variable Proportions.

Law of Diminishing Marginal Rate of Substitution.

Increasing Returns to Scale.

✅ Correct Option: 2

Related questions:

30 May Shift 2

The shape of the long-run average cost curve and long-run marginal cost curve.

14 May Shift 1

Match List-I with List-II

List–I	List–II
(A) Total variable cost	(I) TR – (TVC + TFC)
(B) Total Revenue	(II) TVCₙ – TVCₙ₋₁
(C) Profit	(III) Average variable cost × Quantity
(D) Marginal cost	(IV) Price × Quantity

Choose the correct answer from the options given below:

13 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Relationship between the variable input and output.	(I) Average Product
(B) Output per unit of variable input.	(II) Marginal Product
(C) Change in output per unit of change in the input	(III) Law of variable proportions
(D) The marginal product of a factor input initially rises with its employment level	(IV) Total Product

Choose the correct answer from the options given below: