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The law of variable proportions is applicable only

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The law of variable proportions is applicable only

A.

In the long-run period

B.

To large-scale enterprises

C.

To small-scale enterprises

D.

In the short-run period

Correct answer is D

The law of variable proportions states that as the quantity of one factor is increased, keeping the other factors fixed, the marginal product of that factor will eventually decline. It is applicable in the short-run period because there is at least, one fixed factor of production.