Question

18. Law of variable proportion is valid when:
a) Only one input is fixed and all other
inputs are kept variable
(N 07)
b) All factors are kept constant
c) All inputs are varied in the same
proportion
d) None of these​

Answer 1

Answer:

Answer: The law of variable proportions is as follows: “If a producer increases the units of a variable factor while keeping other factors fixed, then initially the total product increases at an increasing rate, then it increases at a diminishing rate, and finally starts declining.”

Answer 2

Option d, none of these is the correct answer.

Law of variable proportion is valid when one factor is made variable keeping all the other factors constant.

1. The factors of production in the law are not used in fixed combinations.
2. The state of technology is assumed to be given and it is also given that the variable factors are homogenous.
3. It is applicable only in short run because in long run all fators of production are made variable.