Question

The law of variable proportions is drawn under all of the assumptions mentioned below, except the assumption that __________.

• A. the technology is changing
• B. there must be some inputs whose quantity is kept fixed
• C. we consider only physical inputs and not economic profitability in monetary terms
• D. the technology is given and stable

Answer 1

Answer: (A)

the technology is changing

It is only possible for the law of variable proportions to operate under specific conditions.

1. The state of technology is given and remains unchanged

2. It is assumed that some inputs are fixed while others are varied. As it is only then that the factor proportions can be changed.

3. It is assumed that technology is such that it is possible to change the factor proportions. The law will not apply in situations where the factors of production must be used in fixed proportions.

4. It is assumed that all the units of the variable factor are homogeneous and are equally efficient. (eg every worker hired is equally efficient).