________ shows the relationship between inputs and outputs in the long period.
Law of return to scale
The correct answer is option 4. The law of return to scale explains the relationship between inputs and outputs in the long period. It examines how the output of production changes when all inputs are increased proportionally. If output increases by a larger proportion, it is called increasing returns to scale; if by a smaller proportion, it is decreasing returns to scale.
Similar Questions
In relation to Production Possibilities Curve (PPC), which of the following statements is INCORRECT?
The laws of _____ describe the technically possible ways of increasing the level of output.
If the proportionate increase in the output is less than proportionate increase in the inputs it is said to be ____ returns.
The Long-Run Analysis of Production is done under which one of the following law of Production?
The ______ is a hypothetical representation of the amount of two different goods that can be obtained by shifting resources from the production of one, to the production of the other.
The curve of production possibility is concave in nature because of ____.
Which of the following is/are true at equilibrium in a perfect competition?
(1) MR = MC
(2) AC = MC = AR = MR
(3) MC is falling
Identify the incorrect statement.
Which of the following is an INCORRECT match in the context of economics?
(i) Study of an individual firm an industry - macro economics
(ii) Want satisfying capacity of a good - utility
(iii) Exchange of apples with eggs - ceteris paribus
Marginal Rate of Transformation is the slope of ______.
Important Questions from Microeconomics
Which of the following statement is correct?
I. Indifference curves are sloping from left to right.
II. Higher indifference curve gives a higher level of utility.
Match List I with List II:
List- I
Shape of revenue curve of the firm
List – II
Market structure
A.
Kinked revenue-curve (I)
Monopolistic competition B.
Infinitely elastic straight line curve (II)
Perfect competition C.
Relatively less elastic curve (III)
Oligopoly D.
Relatively high elastic curve (IV)
Monopoly.
Choose the correct answer from the options given below -Marginal revenue of a firm is constant throughout under _________.
The cost curve which is a rectangular hyperbola is:
Rare of inflation is equal to:
[A = Price Index]
