Question: The law of variable proportion is generally referred to as the
Options:
Law of absolute advantage
Law of equimarginal returns
Law of diminishing returns
Law of comparative advantage
✅ Explanation: The law of variable proportions, also known as the law of diminishing returns, states that as you increase the quantity of one input while keeping other inputs constant, the marginal product of that input will eventually decrease. In other words, there is a point where adding more of a variable input will not lead to a proportional increase in output. Â