Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Production and Costs

Question:
The law of variable proportions arises because factor proportions change as long as one factor is held _______ and the other is ___________
Options:
constant, constant
increased, increased
increased, constant
constant, decreased
Correct Answer:
increased, constant
Explanation:
The law of variable proportions arises because factor proportions change as long as one factor is held constant and the other is increased. What if both factors can change? Remember that this can happen only in the long run and law of variable proportions is applicable in short run.