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Production activity in the short period is analysed with the help of
- a)Law of variable proportion
- b)Law of returns to scale
- c)Both (a) & (b)
- d)None of the above.
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Production activity in the short period is analysed with the help ofa)...
The correct answer is (a) Law of variable proportion.
Production Activity in the Short Period:
Law of Variable Proportion:
- In the short run, at least one factor of production is fixed while others are variable.
- The relationship between input and output in the short run is analyzed through the Law of Variable Proportion.
- This law states that as more units of a variable factor are combined with a fixed factor, the marginal product of the variable factor may initially increase, but eventually, it will decrease.
The Law of Returns to Scale, on the other hand, applies to the long run, where all factors of production are variable.
Law of Variable Proportion:
- In the short run, at least one factor of production is fixed while others are variable.
- The relationship between input and output in the short run is analyzed through the Law of Variable Proportion.
- This law states that as more units of a variable factor are combined with a fixed factor, the marginal product of the variable factor may initially increase, but eventually, it will decrease.
The Law of Returns to Scale, on the other hand, applies to the long run, where all factors of production are variable.
Community Answer
Production activity in the short period is analysed with the help ofa)...
And (b)
Explanation:
The production activity in the short period is influenced by two important laws of production, which are the Law of Variable Proportions and the Law of Returns to Scale. The Law of Variable Proportions explains the relationship between the input and output in the short run, where at least one input is fixed and other inputs are variable. This law helps to determine the optimal combination of inputs that can produce maximum output in the short run.
On the other hand, the Law of Returns to Scale explains the relationship between the scale of production and the output in the long run. It helps to determine the optimal scale of production that can result in maximum output with a given set of inputs. Both these laws are important in analysing the production activity in the short period, as they help to determine the optimal input combinations and the optimal scale of production that can result in maximum output. Therefore, the correct answer is option (c) Both (a) and (b).
Explanation:
The production activity in the short period is influenced by two important laws of production, which are the Law of Variable Proportions and the Law of Returns to Scale. The Law of Variable Proportions explains the relationship between the input and output in the short run, where at least one input is fixed and other inputs are variable. This law helps to determine the optimal combination of inputs that can produce maximum output in the short run.
On the other hand, the Law of Returns to Scale explains the relationship between the scale of production and the output in the long run. It helps to determine the optimal scale of production that can result in maximum output with a given set of inputs. Both these laws are important in analysing the production activity in the short period, as they help to determine the optimal input combinations and the optimal scale of production that can result in maximum output. Therefore, the correct answer is option (c) Both (a) and (b).
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Production activity in the short period is analysed with the help ofa)Law of variable proportionb)Law of returns to scalec)Both (a) & (b)d)None of the above.Correct answer is option 'A'. Can you explain this answer?
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