Assumptions of law of variable proportions

The law, of variable proportions holds good  under the following assumptions:

  • Labour is the only variable factor or at least one factor input is held constant while others are variable.
  • Short run. The law assumes short run situation: The time is too short for a firm to change the quantity of fixed factors, All the, resources apart from this one variable, are held unchanged in quantity and quality,
  • Homogeneous factors. All units of the variable inputs are homogenous i.e. all units of the variable factor are equally efficient.
  • Constant technology. The law assumes that the technique of production remains unchanged during production. There are no changes in technology or techniques of production, It is possible to vary proportions in which various productive inputs are combined,
  • Product is measured in physical units e.g. Kgs, bags, etc.
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