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What is the law of variable proportion in economics?In: Business [Edit categories] |
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Sometimes referred to as variable factor proportions, law of diminishing returns states that as equal quantities of one variable factor are increased, while other factor inputs remain constant, ceteris paribus, a point is reached beyond which the addition of one more unit of the variable factor will result in a diminishing rate of return and the marginal physical product will fall.
First answer by ID1250815422. Last edit by Samsalma91. Contributor trust: 3 [recommend contributor]. Question popularity: 35 [recommend question]
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