Economics · Production and Costs
Consider the following statements regarding returns to scale: 1. Increasing returns to scale occurs when output increases more than proportionately to the increase in all inputs. 2. Constant returns to scale occurs when output increases in the same proportion as the increase in inputs. 3. Decreasing returns to scale occurs when output increases less than proportionately to the increase in inputs. 4. Returns to scale is a short-run concept where at least one factor is fixed. Which of the above statements are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 11, 2 and 3 only✓
- 22 and 4 only
- 31 and 4 only
- 41, 2, 3 and 4
Correct answer
1, 2 and 3 only
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 and Costs MCQs →Want more practice questions on Production and Costs?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Production and Costs