Q.Explain the Law of Variable Proportions.

Showing the 12 most recent of 20 on this concept.

1. CBSE 2026Set MARCH1 markMCQ
   Q.Product obtained from additional factors of production is termed as

   (a) Marginal product

   (b) Total product

   (c) Average product

   (d) Annual product

   ›Reveal solutionSolution

   The product from an additional factor unit is the marginal product — option (a).

   In production analysis (law of variable proportions), three product concepts are used:

   • Total product (TP) — the total output produced by all units of the variable factor together.
   • Marginal product (MP) — the addition to total product when one more unit of the variable factor is employed, other factors held constant. MP = change in TP / change in the variable input.
   • Average product (AP) — total product divided by the number of units of the variable factor (TP / units). …

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2. CBSE 2026Set ANNUAL1 markMCQ
   Q.Read the following both statements and choose the correct option : Assertion (A) : When the marginal product is zero, the total product is constant. Reason (R) : The marginal product measures the change in total product.

   (a) Both A and R are correct and R is the correct explanation of A.

   (b) Both A and R are correct but R is not the correct explanation of A.

   (c) A is correct but R is incorrect.

   (d) Both A and R are incorrect.

   (a) Both A and R are correct and R is the correct explanation of A.

   (b) Both A and R are correct but R is not the correct explanation of A.

   (c) A is correct but R is incorrect.

   (d) Both A and R are incorrect.

   ›Reveal solutionSolution

   Both statements are true, and the definitional link between MP and the change in TP directly explains why MP = 0 implies TP is (momentarily) constant.

   Assertion: 'When the marginal product is zero, the total product is constant' — TRUE at that specific point: since MP = ΔTP/ΔL (the change in Total Product per additional unit of the variable factor), MP = 0 means ΔTP = 0, i.e., Total Product has stopped changing at exactly that unit of input — this is the single point where TP is at its maximum (neither rising nor about to fall from that exact unit's addition).

   Reason: 'The marginal product measures the change in total product' — TRUE; this is the precise definition of Marginal Product (MP = ΔTP/ΔInput).

   …

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3. CBSE 2025Set ANNUAL1 markMCQ
   Q.Which of the following laws explains the short-run production function? (A) Law of demand (B) Law of variable proportion (C) Law of returns to scale (D) Elasticity of demand

   ›Reveal solutionSolution

   The short-run production function is explained by the Law of Variable Proportions, so the answer is (B).

   In the short run some factors (like land or plant) are fixed while others (like labour) are variable, so the factor proportions change as more of the variable factor is applied to the fixed factor. The Law of Variable Proportions describes exactly this: as successive units of a variable factor are added to a fixed factor, total product first rises at an increasing rate, then at a diminishing rate, and may finally fall. The Law of Returns to Scale (C) appl …

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4. CBSE 2025Set ANNUAL1 markMCQ
   Q.In which stage of production a rational producer likes to operate in the condition short-run production? (A) First stage (B) Second stage (C) Third stage (D) None of these

   ›Reveal solutionSolution

   A rational producer operates in the second stage of production, so the answer is (B).

   The Law of Variable Proportions has three stages. In Stage I (increasing returns) the average product keeps rising, meaning the fixed factor is under-utilised, so it is not optimal to stop here. In Stage III (negative returns) marginal product becomes negative and total product falls, so producing here is irrational. In Stage II (diminishing but positive returns) total product is still increasing and marginal product, though declining, …

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5. CBSE 2025Set ANNUAL1 markMCQ
   Q.Which factors among the following we find in short-run production process? (A) Fixed factors (B) Variable factors (C) Both (A) and (B) (D) None of these

   ›Reveal solutionSolution

   Short-run production uses both fixed and variable factors, so the answer is (C).

   The short run is a time period too short to change all inputs. In it, at least one factor (such as plant, machinery or land) is fixed, while other factors (such as labour, raw material and power) can be varied to change output. This co-existence of fixed and variable factors is exactly why the Law of Variable Proportions operates in the …

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6. CBSE 2025Set ANNUAL1 markMCQ
   Q.Which of the following factors are there in short-run production process? (A) Fixed factors (B) Variable factors (C) Both (A) and (B) (D) None of these

   ›Reveal solutionSolution

   In the short run a firm has both fixed factors and variable factors, so the answer is (C) Both (A) and (B).

   Economists classify the production period by how freely inputs can be changed. In the short run, the quantity of some inputs cannot be altered — these are the fixed factors (for example, plant, building, heavy machinery). Other inputs can be freely increased or decreased with the level of output — these are the variable factors (for example, labour, raw material, power).

   …

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7. CBSE 2024Set MARCH1 markMCQ
   Q.Formula for calculating AP is :

   (a) TP/MP

   (b) ΔTP/N

   (c) TP/N

   (d) ΔTP/ΔN

   ›Reveal solutionSolution

   The correct option is (c) TP/N: AP = total product ÷ units of the factor.

   Average product (AP) is the output per unit of the variable factor. It is found by dividing total product (TP) by the number of units (N) of the variable factor employed: AP = TP/N.

   …

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8. CBSE 2024Set ANNUAL1 markMCQ
   Q.Which factor(s) among the following do we find in short-run production process? (A) Fixed factor (B) Variable factor (C) Both (A) and (B) (D) None of these

   ›Reveal solutionSolution

   The short-run production process has both fixed and variable factors, so the answer is (C).

   In the BSEB Inter Class-12 Economics syllabus, the short run is defined as the period in which at least one factor of production is fixed (e.g. plant, machinery) while others are variable (e.g. raw material, labour). Production in the short run therefore involves both fixed and variable factors together — this …

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9. CBSE 2024Set ANNUAL1 markMCQ
   Q.Law of variable proportion is related to (A) Long-run (B) Short-run (C) Both (A) and (B) (D) Very long-run

   ›Reveal solutionSolution

   The law of variable proportions operates in the short run, so the answer is (B).

   In the BSEB Inter Class-12 Economics syllabus, the law of variable proportions (returns to a variable factor) describes how total, average and marginal product change when one factor is increased while other factors are kept fixed. This is possible only in the short run, where at least one factor is …

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10. CBSE 2024Set ANNUAL1 markMCQ
    Q.Labour is an example of:

    (a) A fixed factor

    (b) A variable factor

    (c) demand

    (d) supply

    ›Reveal solutionSolution

    Labour is an example of a variable factor — option (b).

    In the short run, factors of production are of two kinds:

    • Fixed factors – whose quantity cannot be changed in the short run (e.g., plant, machinery, factory building).
    • Variable factors – whose quantity can be readily changed with the level of output (e.g., labour, raw materials, power). …

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11. CBSE 2023Set ANNUAL1 markMCQ
    Q.The value of Change in output / Change in input is-

    (a) Total Product

    (b) Average product

    (c) Marginal Product

    (d) None of these

    (a) Total Product

    (b) Average product

    (c) Marginal Product

    (d) None of these

    ›Reveal solutionSolution

    Marginal Product = Change in output ÷ Change in input.

    Total Product (TP) is the overall quantity of output produced by all units of the variable factor together. Average Product (AP) = TP ÷ number of units of the variable factor. Marginal Product (MP), by contrast, specifically measures the ADDITIONAL output from the LAST unit of the variable input added, calculated as MP = ΔTP/ΔL (change in total product divided by change in labour/input units). It is this measure — the ratio of change in output t …

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12. CBSE 2023Set ANNUAL1 mark
    Q.What the factor is called, which the firm can vary in the short run?

    ›Reveal solutionSolution

    The factor a firm can change in the short run is the Variable Factor.

    In the short run, a firm operates with a given plant/capital size that cannot be altered quickly — this is the Fixed Factor. However, the firm CAN change the quantity of certain other inputs — most commonly labour and raw materials — within this same short period to adjust its output level; such an input is called the Variable Factor. The behaviour of output as the variable factor is changed, …

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