Practicing Success

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