Economics 9708 · AS & A Level · Factors of production

Factors of production — practice question

Which statement explains how the law of variable proportions works?

  • AAs all factors are increased in proportion, the marginal cost of production increases.
  • BAs all factors are increased in proportion, total product rises at a diminishing rate.
  • CAs more of a variable factor is added to a fixed factor, the marginal cost of production diminishes.
  • DAs more of a variable factor is added to a fixed factor, total product rises at a diminishing rate.

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