Economics · Production Theory - Returns to Scale
Assertion (A): Increasing Returns to Scale (IRS) can be caused by the indivisibility of capital equipment and geometric economies where doubling inputs more than doubles capacity. Reason (R): A homogeneous production function of degree n exhibits Increasing Returns to Scale (IRS) when n > 1.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1A is not correct, but R is correct
- 2A is correct, but R is not correct
- 3Both A and R are correct, but R is NOT the correct explanation of A✓
- 4Both A and R are correct, and R is the correct explanation of A
Correct answer
Both A and R are correct, but R is NOT the correct explanation of A
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Production Theory - Returns to Scale MCQs →Want more practice questions on Production Theory - Returns to Scale?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Production Theory - Returns to Scale