Advertisements
Advertisements
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.
Options
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.
MCQ
Advertisements
Solution
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.
shaalaa.com
Is there an error in this question or solution?
