CUET Economics 2025 2 June Shift 1 PYQs

Choose the correct equations in the context of costs.

(A) TFC = AFC × quantity

(B) LRMC = (TC at $q_n$ units) – (TC at $q_{n-1}$ units)

(C) TC = TVC × TFC

(D) LRAC = TC/q

Choose the correct answer from the options given below:

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

1. Decreasing Return to scale.
2. Increasing return to scale.
3. Constant Return to scale.
4. Diminishing Marginal Product.

The tendency where marginal productivity first increases then starts falling is known as ______