Question

Which of the following assumption is not applicable for the law of variable proportions?

• A. The law operates in the long run
• B. There are two factors of production
• C. The technology remains constant
• D. (B) and (C)

Answer 1

The correct option is A The law operates in the long run

In the long run all factors are variable thus returns to a single changing variable factor does not exist. The law only operates in the short run where it is not possible to vary all factors and thus, at least one factor is fixed.