Question

In the law of variable proportion, which proportion is varied?

• A. Proportion between fixed and variable inputs
• B. The ratio between marginal and average products
• C. The proportion between marginal and total products
• D. None of these

Hint:

In the law of variable proportion, output changes in response to changes in the proportion of variable inputs, while fixed inputs remain constant.

Answer 1

The Correct Option is A

Step 1: Understanding the law of variable proportion.
The law of variable proportion refers to the principle that when one factor of production (such as labor) is increased while other factors (such as capital) are kept constant, the output initially increases at an increasing rate but eventually begins to increase at a decreasing rate. This law is concerned with the relationship between variable and fixed inputs.

Step 2: Analyzing the options.
(A) Proportion between fixed and variable inputs: Correct. The law of variable proportion primarily deals with changes in the proportion between fixed and variable inputs.
(B) The ratio between marginal and average products: This is incorrect, as the law of variable proportion does not specifically focus on this ratio.
(C) The proportion between marginal and total products: This is incorrect. The law is focused on the relationship between inputs, not on this specific proportion.
(D) None of these: This is incorrect because the correct answer is (A) Proportion between fixed and variable inputs.

Step 3: Conclusion.
The correct answer is (A) Proportion between fixed and variable inputs, as the law of variable proportion is based on changes in the ratio of fixed to variable inputs.