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Why should businesses study the law of variable proportions?

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Question

Why should businesses study the law of variable proportions?

Options

  • To keep input costs high

  • To find the best mix of inputs

  • To reduce total output

  • To make marginal product always zero

MCQ
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Solution

To find the best mix of inputs

Explanation:

The law helps businesses know the right amount of variable input to use for maximum efficiency.

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