# What are the Assumptions of the Law of variable proportions?

## Here we understand about the Assumptions of the Law of variable proportions in detailed.

__What are the Assumptions of the Law of variable proportions?__

__The Law of variable proportions is based on the following assumptions:__. For example, we have taken plot of 10 acres of land and assumed that the farmer applies the successive units of labour and capital on this plot of land. The result is that the total output increases but a diminishing rate after a certain stage. If, howver, additional units of labour and capital are used on additional plots of land, the law may not apply.__The first assumption is that one of the factors or production is fixed or constant__in our example, labour and capital, are indentical or homogeneous.__The second assumption is that all the different units of a variable factor__,Production techniques remain the same. If, however, improved methods of cultivation, in the form of better implements or improved seeds or fertilisers are used, the law may not operate; instead of diminishing returns, there may be increasing returns.__Thirdly, the law is also based on the assumption that there are no improvements in the art or methods of cultivation.__the law also assumes that it should be possible to change the combination of the factors of production by using a little less or little more of one or the other factor. The law will not apply to cases where the combination of the factors is fixed and cannot be altered.__Lastly,__

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Assumptions of the Law of variable proportions

factors of production is fixed or constant

there are no improvements in the art or methods of cultivation

Law of Variable Proportion- Assumption of Law of variable proportions.

Kinnari

Tech writer at NewsandStory

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