When a proportional increase in all inputs results in an increase in output by a smaller proportion. This represents: Option 1: Increasing returns to scale. Option 2: Constant returns to scale. Option 3: Cobb-Douglas returns to scale. Option 4: Decreasing returns to scale.

The answer is 'Decreasing returns to scale.'. View full solution:

CUET Economics - When a proportional increase in all inputs results in an increase in output by a smaller proportion. This represents: | PYQs + Solutions

CUET Economics 2026 31st May Shift 1

Micro

Easy

Increasing returns to scale.

Constant returns to scale.

Cobb-Douglas returns to scale.

Decreasing returns to scale.

✅ Correct Option: 4