Question

Statement 1: In the short run production function, there are both fixed factors and variable factors.

Statement 2: Law of variable proportion operates in the long run.

विकल्प

• Both the statements are true.

• Both the statements are false.

• Statement 1 is true, but Statement 2 is false.

• Statement 1 is false, but Statement 2 is true.

Answer 1

Statement 1 is true, but Statement 2 is false.

Explanation:

In the short run, some factors are fixed, and others are variable. Statement 2 is false because the law of variable proportions operates in the short run; the long run is associated with returns to scale.