GENERAL KNOWLEDGE

Detailed explanation-1: -Thus as the quantity of variable input is initially increased, the fixed input is being better utilized, resulting in an increase in efficiency and thus there are increasing returns and then constant returns.

Detailed explanation-2: -A constant return to scale is when an increase in input results in a proportional increase in output. Increasing returns to scale is when the output increases in a greater proportion than the increase in input.

Detailed explanation-3: -The correct answer is The marginal product of a factor input initially rises with its employment level, but after reaching a certain level of employment, it starts falling. The Law of Variable Proportion is regarded as a key economics concept.

Detailed explanation-4: -Statement of Law of Variable Proportions The Law of Variable Proportions states that as we increase the quantity of only one input while keeping other inputs fixed, the total product increases initially at an increasing rate, then at a decreasing rate, and finally at a negative rate.