CUET Economics 2025 30 May Shift 1 PYQs

At the minimum point of the long run average cost curve .......... is observed.

Consider the production function $q = f(x_1, x_2)$ where the firm produces q amout of output $x_1$ amount of factor 1 and $x_2$ amount of factor 2. The firm decides to increase the employment level of both the factors t (t > 1). Identify the equation for decreasing returns to scale from the following.

1. $q = f(x_1, x_2)$
2. $f (tx_1, tx_2) = tf (x_1, x_2)$
3. $f (tx_1, tx_2) < tf (x_1, x_2)$
4. $f (tx_1, tx_2) > tf x_1, x_2)$

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