When all the factors of production are varied, the relationship between input and output is known as?

Theory of variable proportion.

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Returns to scale.

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Law of diminishing marginal utility.

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Solution

The correct option is C Returns to scale.
As in the long run there are no fixed factors and all factors are changing and variable, the returns will no longer be to a factor but rather to the 'scale of production' as a whole. Thus the long run phenomenon is known as returns to scale.

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Similar questions

Q. If all inputs are increased in the same proportion, then it is a case of ___________.
(i) Short run production function
(ii) Long run production function
(iii) Laws of variable proportions
(iv) Laws of returns to scale

Q. Diminishing marginal returns for the first four units of a variable input is exhibited by which of these total product sequences:

Constant returns to scale (CRS) is a property of production function that holds when a proportional increase in all inputs results in an increase in output by the same proportion.

Q. Law of diminishing marginal utility states that when more and more units of a commodity are consumed, marginal utility ___________.

Q. Law of Diminishing Marginal Utility states that when more and more units of a commodity are consumed, marginal utility:

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When all the factors of production are varied, the relationship between input and output is known as?

The correct option is C Returns to scale.As in the long run there are no fixed factors and all factors are changing and variable, the returns will no longer be to a factor but rather to the 'scale of production' as a whole. Thus the long run phenomenon is known as returns to scale.

The correct option is C Returns to scale.
As in the long run there are no fixed factors and all factors are changing and variable, the returns will no longer be to a factor but rather to the 'scale of production' as a whole. Thus the long run phenomenon is known as returns to scale.