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