JAMB - Economics (2011 - No. 14)
The law of variable proportions is applicable only
in the long-run period
to large-scale enterprises
to small-scale enterprises
in the short-run period
Εξήγηση
The law of variable proportions states that as the quantity of one factor is increased, keeping the other factors fixed, the marginal product of that factor will eventually decline. It is applicable in the short-run period because there is at least, one fixed factor of production.