Question

Law of Variable Proportions is NOT applicable when ______.

Options

• all factor inputs increase in the same proportion.

• the time period is short.

• all the units of variable input are equally efficient.

• technology remains constant.

Answer 1

Law of Variable Proportions is NOT applicable when all factor inputs increase in the same proportion.

Explanation:

One of the laws of variation looks at how output changes when only one input changes, like labor, but other inputs stay the same, like land and cash. It is not the Law of Variable Proportions that applies if all factor inputs go up by the same amount. Instead, it is the Law of Returns to Scale.