Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Production and Costs

Question:

In the long run, all factors are ___________ and hence law of _________________ is applicable.

Options:

Constant, law of variable proportions

Variable, returns to scale

Constant, returns to scale

Variable, law of variable proportions

Correct Answer:

Variable, returns to scale

Explanation:

The correct answer is Option 2: Variable, returns to scale

In the long run, all factors are variable and hence law of Returns to Scale is applicable.