GK
BUSINESS ECONOMICS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
In short run, the law of variable proportions is also known as the
|
|
Law of return to scale
|
|
|
Law of constant returns
|
|
|
Law of increasing returns
|
|
|
Law of diminishing returns
|
Explanation:
Detailed explanation-1: -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. Law of variable proportion is also known as the Law of Proportionality.
Detailed explanation-2: -The Law of Variable Proportion explains the short-run production function.
Detailed explanation-3: -The law of increasing returns is also called the law of diminishing costs. The law of increasing return states that: The tendency of the marginal return to rising per unit of variable factors employed in fixed amounts of other factors by a firm is called the law of increasing return".
There is 1 question to complete.