Given below are two statements:
Assertion (A): The law of variable proportions operates when labour and capital are both increased in the same proportion.
Reason (R): The law of variable proportions arises because factor proportions change when one factor is held constant and the other is increased.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (A) is false but (R) is true.
Assertion (A): The law of variable proportions operates when labour and capital are both increased in the same proportion. — False. When both inputs rise in the same proportion, the factor proportions do not change. That case is returns to scale, a long run idea.
Reason (R): The law of variable proportions arises because factor proportions change when one factor is held constant and the other is increased. — True. The law needs one factor fixed, so that the ratio of the two inputs keeps changing.
NCERT (2026-27): “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.” |