Question

Short-run cost curve are influenced by ____________.

• A. principle of returns to scale
• B. law of variable proportions
• C. external and internal economies and diseconomies
• D. none of the above

Answer 1

Answer: (B)

law of variable proportions

Under short-run only the law of variable proportion is applicable, since short-run is characterised with at least one fixed factor and one variable factor.