What are the reasons of the operations of law of variable proportions?
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The foremost cause of the operation of this law is that some of the factors of production are fixed during the short period. When the fixed factor is used with variable factor, then its ratio compared to variable factor falls. Production is the result of the co-operation of all factors.
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Reasons for Law of Variable Proportions:
- Better Utilization of the Fixed Factor: ADVERTISEMENTS.
- Increased Efficiency of Variable Factor: When variable factors are increased and combined with the fixed factor, then former is utilised in a more efficient manner.
- Indivisibility of Fixed Factor.
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