Question

Which of the following is not an assumption of the law of variable proportions?

• A. Only one factor is variable.
• B. Technique of production remains constant.
• C. Proportion of factors of production remains same.
• D. Units of variable factor are homogeneous.

Answer 1

Answer: (C)

Proportion of factors of production remains same.

The law of variable proportions only applies only when the proportion of factor inputs can be changed. This in turn is only possible when all factors except the one being investigated remain fixed. It also assumes that every marginal unit is the same, and the state of technology is fixed.