In the short run when output of a commodity is sought to be increased, the law of variable proportions comes into operation. Therefore, when the number of one factor is increased or decreased, while other factors are constant, the proportion between the factors is altered.
Law of Variable Proportion is regarded as an important theory in Economics. It is referred to as the law which states that when the quantity of one factor of production is increased, while keeping all other factors constant, it will result in the decline of the marginal product of that factor.
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Answer:
In the short run when output of a commodity is sought to be increased, the law of variable proportions comes into operation. Therefore, when the number of one factor is increased or decreased, while other factors are constant, the proportion between the factors is altered.
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Explanation:
Law of Variable Proportion is regarded as an important theory in Economics. It is referred to as the law which states that when the quantity of one factor of production is increased, while keeping all other factors constant, it will result in the decline of the marginal product of that factor.
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