Question

Under the law of variable proportions, factor ratios keep changing.
Which of the following is correct with respect to the law of variable proportion?

[1 mark]

• A. TP, MP, and AP are U-shaped curves
• B. Only variable factors are used in the production in the short run
• C. Both variable and fixed factors exist at zero level of output
• D. In the long run, all the factors of production are variable

Answer 1

The correct option is D In the long run, all the factors of production are variable

In the long run, nothing is fixed.