Explain the law of variable proportion in which stage of production does a rational producer operates
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This law only applies in the field of production. it express the relation between inputs of variable units and maximum level of production(output).
Assumptions
1)It applies in the short run in which variable factors are include.
2)It operates only in the field of production.
3)The technology remain constant.
4)Resources are fully and efficiently utilized.
Exceptions
1)Technology can be upgrade.
2)some time the resources are not efficiently utilized.
In second stage the rational producer operates because at this stage he gets maximum profits.
Explanation:
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