When does the Law of Variable Proportions, or the Law of Diminishing Returns, become relevant ?

CA Foundation · Business Economics · PYQS · September 2024
When does the Law of Variable Proportions, or the Law of Diminishing Returns, become relevant ?
(A) A. In the short run
(B) B. In the long run
(C) C. In both the short and long run
(D) D. Only when all factors are variable

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. In the short run

Topics: Theory of Production and Cost

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