Micro

Production & Costs

Easy

When a proportional increase in all inputs results in an increase in output by a smaller proportion. This represents:

Increasing returns to scale.

Constant returns to scale.

Cobb-Douglas returns to scale.

Decreasing returns to scale.

✅ Correct Option: 4

When all inputs are increased proportionally and output increases by a smaller proportion, factor productivity is falling as scale rises. This is the definition of decreasing (diminishing) returns to scale.

2025: 14 May Shift 1

At the final level of production, a typical firm observed.

2026: 31 May Shift 1

Find the value of total revenue from the following table and arrange those values of total revenue in decreasing order.

Option	Average revenue	Quantity
A	10	2
B	12	1.5
C	14	1.0
D	16	0.5

Choose the correct answer from the options given below:

2025: 30 May Shift 2

The equation of long-run marginal cost.

2026: 11 May Shift 2

Let the production function of a firm be

$Q = 5L^{1/2}K^{1/2}$

Find out the maximum possible output that the firm can produce with 400 units of L and 400 units of K.

2025: 2 June Shift 1

Average Fixed Cost (AFC) is indicated by?

2025: 29 May Shift 2

When the output added by each additional worker is proportionally less, what it shows?

When a proportional increase in all inputs results in an increase in output by a smaller proportion. This represents:

Solution

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CUET Economics Past Year Questions (Topic-Wise)