CUET Economics - In which of the following conditions, output increases with the same proportion of input? | PYQs + Solutions

CUET Economics 2025 13 May Shift 2

Micro

Easy

Increasing return to sacle.

Decreasing return to scale.

Constant return to scale.

Diminishing marginal productivity.

✅ Correct Option: 3

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When output increases with the same proportion as increase in inputs, this concept is known by?

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A firm produce q amount of output using x₁ amount of factor 1 and x₂ amount of factor 2.

Match List-I with List-II

List-I	List-II
(A). Cobb-Douglas Production Function	(I). f(x₁, x₂) = L f (x₁, x₂)
(B). Constant returns to scale	(II). f(ξx₁, tx₂) = t f (x₁, x₂)
(C). Increasing returns to scale	(III). q = x₁ᵃ x₂ᵇ
(D). Decreasing returns to scale	(IV). f(x₁, x₂) = Lf (x₁, x₂)

Choose the correct answer from the options given below:

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CUET Economics 2025 13 May Shift 2 PYQs