Match List-I with List-II
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List-l |
List-II |
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(A) A proportional increase in all inputs results in an increase in output by a smaller proportion |
(I) Constant returns to scale |
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(B) A proportional increase in all inputs results in an increase in output by a larger proportion |
(II) Law of variable proportions |
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(C) A proportional increase in all inputs results in an increase in output by the same proportion |
(III) Decreasing Returns to Scale |
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(D) Factor proportions change as long as one factor is held constant and the other factors increases |
(IV) Increasing Returns to Scale |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (A)-(III), (B)-(IV), (C)-(I), (D)-(II)
|
List-l |
List-II |
|
(A) A proportional increase in all inputs results in an increase in output by a smaller proportion |
(III) Decreasing Returns to Scale |
|
(B) A proportional increase in all inputs results in an increase in output by a larger proportion |
(IV) Increasing Returns to Scale |
|
(C) A proportional increase in all inputs results in an increase in output by the same proportion |
(I) Constant returns to scale |
|
(D) Factor proportions change as long as one factor is held constant and the other factors increases |
(II) Law of variable proportions |