Match List-I with List-II

List–I	List–II
(A) A proportional increase in all inputs results in an increase in output by a smaller proportion	(I) Constant returns to scale
(B) A proportional increase in all inputs results in an increase in output by a larger proportion	(II) Law of variable proportions
(C) A proportional increase in all inputs results in an increase in output by the same proportion	(III) Decreasing Returns to Scale
(D) Factor proportions change as long as one factor is held constant and the other factors increases	(IV) Increasing Returns to Scale

Choose the correct answer from the options given below:

Option 4: (A) - (III), (B) - (IV), (C) - (I), (D) - (II) -> Let's match each concept correctly:

(A) When all inputs increase proportionally but output increases by a smaller proportion, this is Decreasing Returns to Scale (III). For example, if inputs double but output increases by only 1.5 times.

(B) When all inputs increase proportionally and output increases by a larger proportion, this is Increasing Returns to Scale (IV). For example, if inputs double and output triples.

(C) When all inputs increase proportionally and output increases by the same proportion, this is Constant Returns to Scale (I). For example, if inputs double, output also doubles.

(D) When one factor is held constant while other factors increase, causing factor proportions to change, this describes the Law of Variable Proportions (II), also known as the Law of Diminishing Returns in the short run.

Returns to scale (A, B, C) deal with long-run production where all inputs are variable, while the law of variable proportions (D) deals with short-run production where at least one input is fixed. -> correct