. Law of Variable Proportions is valid when


A: Only one input is varied and all other inputs are kept constant

B: All Factors are kept constant

C: All inputs are varied in the same proportion

D: Any of the above

 

Best Answer

Explanation: 

  • The law of variable proportions, an essential economic concept,

states that an increase in a particular factor of production,

while all others are constant, will cause the marginal product to eventually decline. 

  • The following diagram depicts the law of variable proportions:

 Proportions

Here, TPP is the abbreviation for the total physical product and MPP is the abbreviation for marginal physical product.

Final Answer:

Hence, the correct answer is option A: Only one input is varied, and all other inputs are kept constant.

 

 

Talk to Our counsellor