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Commerce · Q268

Economics

Graduate and Post Graduate · Commerce · question 268

Q268

The law of variable proportions come into being when

A.
There are only two variable factors
B.
There is a fixed factor and a variable factor
Answer
C.
All factors are variable
D.
Variable factors yield less

Answer: Option B

Solution

Answer: Option B
Solution:
The law of variable proportions come into being when there is a fixed factor and a variable factor. The law of variable proportions states that as the quantity of one factor is increased, keeping the other factors fixed, the marginal product of that factor will eventually decline.