The relationship between one variable factor, keeping the quantities of other factors fixed, is called __________.
A
Law of diminishing returns
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B
Law of variable proportion
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C
Returns to scale
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D
Production function
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Solution
The correct option is C Law of variable proportion Law of Variable Proportions examines the production function with one factor variable, keeping the other factors fixed. It refers to the input-output relation when the output is increased by changing the quantity of one input.