Which of the following is not true in case of the law of variable proportions ?
Constant returns to scale in all three stages is not a feature of the law of variable proportions. The law holds some inputs fixed and varies others with unchanged…
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Which of the following is not true in case of the law of variable proportions ?
Answer and explanation
Correct answer D
Constant returns to scale in all three stages is not a feature of the law of variable proportions. The law holds some inputs fixed and varies others with unchanged technology; returns to scale instead concern changing all inputs together.
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Maharashtra and Goa SET (MH SET)