Which of the following is/are true of the short run?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Both (1) and (2)
The short run is a period in which at least one factor stays fixed. Changing the other factor then changes the factor proportions.
Option (1) At least one factor of production cannot be varied. — Correct statement, but it is only one of the correct points, so on its own it is not the answer.
Option (2) The law of variable proportions can operate. — Correct statement, but it is only one of the correct points, so on its own it is not the answer.
Option (4) Returns to scale can be observed. — Incorrect. Returns to scale need all inputs to change in the same proportion, which can happen only in the long run.
NCERT (2026-27): “3.2 The Short Run and the Long Run … In the short run, at least one of the factor – labour or capital – cannot be varied, and therefore, remains fixed. In order to vary the output level, the firm can vary only the other factor. The factor that remains fixed is called the fixed factor whereas the other factor which the firm can vary is called the variable factor.” “3.6 Returns to Scale The law of variable proportions arises because factor proportions change as long as one factor is held constant and the other is increased. … Remember that this can happen only in the long run. One special case in the long run occurs when both factors are increased by the same proportion, or factors are scaled up.” |