Question

Assertion (A): In the first phase of the law of variable proportion, TP increases initially at an increasing rate and MP initially increases.

Reason (R): As the number of variable factors increases, the fixed factors are fully utilised and the efficiency of variable factors increases.

Options

• Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).

• Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).

• Assertion (A) is true, but Reason (R) is false.

• Assertion (A) is false, but Reason (R) is true.

Answer 1

Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).

Explanation:

In the first phase, total product initially rises at an increasing rate and marginal product initially increases. The given reason explains this: adding variable factors makes fuller use of fixed factors and can raise efficiency through specialisation.