What is meant by the postponement of the law of variable proportions ?
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This law is that law which can postpone the Diminishing in marginal product for some time in case of increasing variable. factors also...
Reasons of the law of Postponement...
** Avaibility of perfect substitution in case of increasing variable factors...
** Improvement in the technology of existing fixed capital...
This law is that law which can postpone the Diminishing in marginal product for some time in case of increasing variable. factors also...
Reasons of the law of Postponement...
** Avaibility of perfect substitution in case of increasing variable factors...
** Improvement in the technology of existing fixed capital...
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postponement of the law of variable proportions...
**When there is improvement in technology used in the process of production. So, that greater output is achieved with the same inputs.
**When some substitute of the fixed factors are discovered. So, that the constraint of fixity of the factor is removed. However, such a situation is very rare, if not impossible.
**When there is improvement in technology used in the process of production. So, that greater output is achieved with the same inputs.
**When some substitute of the fixed factors are discovered. So, that the constraint of fixity of the factor is removed. However, such a situation is very rare, if not impossible.
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