Question

Give two assumptions of the law of variable proportions.

Answer 1

The law of variable proportions is based on certain assumptions:

1. Some factors are fixed and some are variable: The law operates in the short run, where at least one factor of production (such as land or capital) is fixed, while another factor (usually labor) is variable.
2. Technology remains constant: The law assumes that the state of technology does not change during the period of production. If technology changes, the effect of varying inputs on output will also change.