Economics · Law of Variable Proportions
In the first stage of the law of variable proportions:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Total product starts declining continuously
- 2Marginal product reaches zero
- 3Fixed factors of production are overutilized and average product of variable factor decreases
- 4Fixed factors of production are underutilized and average product of variable factor increases✓
Correct answer
Fixed factors of production are underutilized and average product of variable factor increases
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