Question

Discuss two criticisms of the law of variable proportions.

Answer 1

1. Assumes a Fixed Technology: The law assumes that technology remains constant throughout the production process. In reality, technological advancements can improve productivity even when only one variable factor is increased. As a result, the pattern of increasing, diminishing, and negative returns may not hold true if better techniques are introduced.
2. Operates Only in the Short Run: The law is applicable only in the short run, where at least one factor (usually capital) is fixed. Critics argue that in the long run, all inputs can be varied, making the law less relevant. Therefore, it does not explain long-term production behaviour or returns to scale.