CUET Economics 2025 26 May Shift 2 PYQs

Suppose in a production process, all inputs get doubled. As a result, if the output gets doubled, the production function exhibits?

1. Decreasing Return to scale.
2. Incresing Returns to scale.
3. Constant Return to scale.
4. Decresing Productivity.

A firm wishes to maximize its profit, find the correct conditions from the following, that must be held by the firm at q₂ at which its profit is maximum.

(A) The price must be less than the average variable cost

(B) The price must be greater than the average variable cost

(C) Marginal cost must be non-decreasing

(D) The price, p, must equal MC

Choose the correct answer from the options given below:

In a long run average cost curve which point is said to be the constant return to scale?