Which of the following is a true statement about the Law of Variable Proportions?It assumes that all units of the variable input are heterogeneous.It is applicable only in the long run.It is applicable only to the agriculture sector.It operates in the short run when at least one factor of production is fixed
Question
Which of the following is a true statement about the Law of Variable Proportions?It assumes that all units of the variable input are heterogeneous.It is applicable only in the long run.It is applicable only to the agriculture sector.It operates in the short run when at least one factor of production is fixed
Solution
The true statement about the Law of Variable Proportions is: "It operates in the short run when at least one factor of production is fixed."
Here's why:
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The Law of Variable Proportions does not assume that all units of the variable input are heterogeneous. In fact, it assumes the opposite - that all units of the variable input are homogeneous, or identical in nature.
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The Law of Variable Proportions is not applicable only in the long run. It is a short-run concept, which operates when at least one factor of production (like land or machinery) is fixed and cannot be changed.
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The Law of Variable Proportions is not applicable only to the agriculture sector. It is a general economic principle that applies to all sectors of the economy, not just agriculture.
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The statement "It operates in the short run when at least one factor of production is fixed" is true. This law comes into play when we increase the quantity of one input while keeping at least one other input constant. This is typically the scenario in the short run, as businesses can usually vary some factors of production (like labor) more easily than others (like capital or land).
Similar Questions
What is the primary reason for the operation of the Law of Variable Proportions? The presence of fixed and variable inputs in the short run. The presence of only variable inputs in the long run. The absence of fixed inputs in the short run. The absence of variable inputs in the long run.
Which one of the following best defines the Law of Variable Proportions? Output decreases as all inputs increase. Output increases as one input is increased, holding all other inputs constant. Output increases as all inputs increase. Output decreases as one input is increased, holding all other inputs constant.
Which one of the following scenarios best illustrates the operation of the Law of Variable Proportions? A baker increases the amount of flour used in a recipe while keeping the amount of yeast constant, and the bread rises more. A farmer uses more fertilizer on his fields and gets a larger crop yield. A factory adds more workers to a production line and output increases, but at a decreasing rate. A restaurant adds more chefs to the kitchen and the number of meals prepared per hour remains the same.
How is the Law of Variable Proportions different from the Law of Returns to Scale?The former applies to the long run while the latter applies to the short run.The former deals with variable proportions while the latter deals with fixed proportions.The former assumes that one input is kept constant while the latter assumes that all inputs are varied.The former assumes that all inputs are varied while the latter assumes that one input is kept constant
Law of variable proportion is valid when ________________.a.Only one input is fixed and all other inputs are kept variableb.All factors are kept constantc.All inputs are varied in the same proportiond.Only one input is variable and all other inputs are kept fixed
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