In given production function q = f(x_1, x_2) what is depicted by f(tx_1, tx_2) < tf(x_1, x_2). Option 1: Constant returns to scale. Option 2: Increasing returns to scale. Option 3: Decreasing returns to scale Option 4: Marginal returns to scale.

The answer is 'Decreasing returns to scale'. View full solution:

CUET Economics - In given production function q = f(x_1, x_2) what is depicted by f(tx_1, tx_2) < tf(x_1, x_2). | PYQs + Solutions

CUET Economics 2025 13 May Shift 2

Micro

Medium

Constant returns to scale.

Increasing returns to scale.

Decreasing returns to scale

Marginal returns to scale.

✅ Correct Option: 3