Question

State any four assumptions on which the law of variable proportions is based​

Answer 1

Answer:

1. Constant state of Technology: It is assumed that the state of technology will be constant and with improvements in the technology, the production will improve.

2. Variable Factor Proportions: This assumes that factors of production are variable. The law is not valid, if factors of production are fixed.

3. Homogeneous factor units: This assumes that all the units produced are identical in quality, quantity and price. In other words, the units are homogeneous in nature.

4. Short Run: This assumes that this law is applicable for those systems that are operating for a short term, where it is not possible to alter all factor inputs

Answer 2

Answer:

Law of variable proportion holds good under certain circumstances, which will be discussed in the following lines.

• Constant state of Technology: It is assumed that the state of technology will be constant and with improvements in the technology, the production will improve.

• Variable Factor Proportions: This assumes that factors of production are variable. The law is not valid, if factors of production are fixed.

• Homogeneous factor units: This assumes that all the units produced are identical in quality, quantity and price. In other words, the units are homogeneous in nature.

• Short Run: This assumes that this law is applicable for those systems that are operating for a short term, where it is not possible to alter all factor inputs.

Explanation: