Given below are two statements: Assertion A: There are increasing return to scale, if output become more than doubles when inputs are doubled. Reason R: Large scale of operation allows managers and workers to specialised in their tasks. In the light of the above statements, choose the most appropriate answer.
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Production and returns to scale has come up 92 times in 6 exams since 2007.
This question is on Returns to scale and homogeneity, part of Production and returns to scale in Microeconomics.
How output changes when all inputs scale up, including Euler's theorem and the degree of homogeneity.
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Question from the CUET-PG 2026 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.