Question

What Are the Assumptions of Law of Variable Proportions?

Answer 1

Following are the assumptions of the law of variable proportions:

1. Only one factor is variable while the other factors are constant.
2. This law will not be applicable in conditions where the factors are varied proportionately.
3. The variable units are homogeneous in nature i.e all are having equal efficiency.
4. Price for input remains unchanged.
5. The technology used may remain the same or unchanged at any given point of time.
6. This is applicable for short run only.

Also read:

• Total Product Average Product and Marginal Product
• Meaning of Demand and Factors Affecting Demand
• Law of Variable Proportion
• The Law of Diminishing Marginal Product and the Law of Variable Proportions

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