Discussion
The law of variable proportions of production is applicable in :
Answer: C
The law of variable proportions applies in the short period.
The law describes what happens to output when one factor, such as labour, is increased while at least one other factor, such as land or machinery, is held fixed. Total product first rises at an increasing rate, then at a diminishing rate, and finally falls. Holding some factors fixed is possible only in the short run.
In the long and very long period all factors can be varied, and the relevant law is returns to scale. In the market period supply is fixed and production cannot be changed at all.
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