When a proportional increase in all inputs results in an increase in output by the half proportion, then the production function is said to display which returns to scale? Option 1: Increasing returns to scale Option 2: Constant returns to scale Option 3: Law of variable proportion 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 the half proportion, then the production function is said to display which returns to scale? | PYQs + Solutions

CUET Economics 2026 21st May Shift 1

Micro

Easy

Increasing returns to scale

Constant returns to scale

Law of variable proportion

Decreasing returns to scale

✅ Correct Option: 4