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Question Practice

If a production function shows Decreasing Returns to Scale (DRS), what can be inferred?

Attempt the question, check the explanation, and continue with similar questions to build confidence before exams.

MCQ_SA
CBSE
Class 12
Economics
Introductory Microeconomics
Production And Costs
Question Bank

If a production function shows...

Single Answer MCQ
Q-00089442

If a production function shows Decreasing Returns to Scale (DRS), what can be inferred?

1

Output increases at the same rate as inputs

2

Output increases by a larger proportion than inputs

3

Output increases by a smaller proportion than inputs

4

Output decreases when inputs are increased

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Q1.

What does the production function describe?

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Q2.

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Q3.

Which production function exhibits increasing returns to scale?

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Q4.

What is the marginal product of labor (MPL)?

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