Relationship between inputs and outputs, when all inputs are changed in the same proportion are called:

CA Foundation · Business Economics · PYQS · January 2026
Relationship between inputs and outputs, when all inputs are changed in the same proportion are called:
(A) A. Law of variable proportion
(B) B. Returns to scale
(C) C. Isoquants
(D) D. Iso-cost lines

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Returns to scale

Topics: Theory of Production and Cost

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