As long as decreasing returns to scale operates, as the firm increases output, the average cost must be ................ Option 1: Rising Option 2: Falling Option 3: Constant Option 4: Equal to output

The answer is 'Rising'. View full solution:

CUET Economics - As long as decreasing returns to scale operates, as the firm increases output, the average cost must be ................ | PYQs + Solutions

CUET Economics 2025 30 May Shift 2

Micro

Medium

Rising

Falling

Constant

Equal to output

✅ Correct Option: 1