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

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30 May Shift 2

Match List-I with List-II

Choose the correct answer from the options given below:

15 May Shift 1

Choose the correct options with reference to short-run average costs.

(A) Average total cost = total cost / quantity of output

(B) Average total cost = average variable cost + average fixed cost

(D) Average fixed cost = average variable cost - average cost

Choose the correct answer from the options given below:

31 May Shift 1

When output increases with smaller proportion compare to increase in inputs, this return is called?