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What is the importance of the law of variable proportions

What is the importance of the law of variable proportions.

Answers

Martin
i. It is helpful in understanding clearly the process of production. It explains the input output relations. We can find out by-how much the total product will increase as a result of an increase in the inputs.

ii. The law tells us that the tendency of diminishing returns is found in all sectors of the economy which may be agriculture or industry.

iii. The law tells us that any increase in the units of variable factor will lead to increase in the total product at a diminishing rate. The elasticity of the substitution of the variable factor for the fixed factor is not infinite.
marto answered the question on April 16, 2019 at 12:54

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