In the long run, average cost must be rising as the firm increases output as long as the.......... operates. Option 1: Increasing Returns to Scale. Option 2: Law of Variable Proportions. Option 3: Decreasing Returns to Scale. Option 4: Constant Returns to Scale.

The answer is 'Decreasing Returns to Scale.'. View full solution:

CUET Economics - In the long run, average cost must be rising as the firm increases output as long as the.......... operates. | PYQs + Solutions

CUET Economics 2025 22 May Shift 1

Micro

Medium

Increasing Returns to Scale.

Law of Variable Proportions.

Decreasing Returns to Scale.

Constant Returns to Scale.

✅ Correct Option: 3

Related questions:

22 May Shift 1

If there is a positive level of output at which a firm's profit is maximized in the short run, that condition must not hold at that output level:

28 May Shift 2

At the positive level of output, where a firm's profit is maximized, the following conditions must hold.

(A) $p = LRMC$

(B) LRMC is non-decreasing at $q_0$

(D) $p \geq$ min. LRAC

Choose the correct answer from the options given below:

28 May Shift 1

The short run supply curve is represented as?

The rising part of the marginal cost curve.
The rising part of the marginal cost curve from and above the minimum average variable cost curve.
The rising part of the marginal cost curve from and above the minimum average cost curve.
The marginal cost curve.