Page 2 - Lesson notes-Production Function(38)
P. 2
2. Assumptions of Law of Variable Proportions
(a) Only one input is variable, the other is held constant or fixed.
(b) It is possible to change the proportion in which the factor units are combined.
(c) It assumes a short run.
(d) The state of technology is given and remains unchanged.
(e) Price of factors of production do not change.
3. It can be explained with the help of schedule and diagram:
