Question

In _____ production function,the ratio between the inputs remain constant
1 Variable proportion
2 Fixed proportion
3 short run
4 long run​

Answer 1

Answer:

2 the fixed proportion

Answer 2

In fixed proportion production function, the ratio between the inputs remain constant

• The fixed proportion function specifies that the production factors employed are fixed in proportions since there is no substitutability between factors.
• For example: Two inputs ( A and B ) must always be used to generate the company's output in the 1:1 ratio. That is, with the same sum of B, any specific quantity of A can be used.
• Let 10 units of A when used with 10 units of Y produce an output of 100 units. If the quantity of B is increased, holding the quantity of A constant at 10, the output will remain the same at 100 units, since the inputs to be used at a fixed ratio, (here 1: 1).