Returns to scale involve variations in the quantities of the various factors of production:
1)Simultaneously
2)Proportionately

Both (1) and (2) are correct

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(1) is correct and (2) is incorrect

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(1) is incorrect and (2) is correct

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Both (1) and (2) are incorrect

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Solution

The correct option is B (1) is correct and (2) is incorrect
Returns to scale operate in the long run as there are no fixed factors. This means that the proportion of inputs can not be changed (as proportions can only be changed if at least one factor remains unchanged), rather all inputs are changed in the set proportions and the scale of production is increased.

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