Question

31. Which of the following explains the
short-run production function ? *
(1 Point)
a) Law of Demand
(b) Law of Variable Proportion
(C) Returns to Scale
(d) Elasticity of Demand

Answer 1

(b) Law of Variable Proportion explains the short-run production function.

What is short-run production function?

• Short run production function can be described as a function in which one factor remains non-variable whereas the other are variables.
• A short run production function focuses on one variable factor and the output that would be generated from that particular variable factor.
• The law of variable factor also focuses on the principle that how changing a certain factor, would increase or decrease the product (output). Hence, the correct option is (b) Law of Variable Proportion.
• All other options are incorrect as their concepts do not match with short-run production function.

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