Question

Under the law of variable proportions, factor ratios keep changing.
According to the above statement, the ratio between which of the following keeps changing?

[1 mark]

• A. AP and TP
• B. MP and TP
• C. Variable and fixed factors
• D. Long run and short run

Answer 1

The correct option is C Variable and fixed factors

The proportion or ratio of fixed and variable factors keeps changing when additional units of variable factors are employed.