CUET Economics 2025 28 May Shift 2 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:

A firm will shut down in the short run if__________.

Set of all possible combinations of the two inputs that yield the same maximum possible level of output is known as.........