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  Assumptions of Short-run law

Assumptions of Short-run law:

The law depends on the assumptions shown below:

(1) Only one factor is prepared variable and other factors are kept steady.

(2) This law does not exert in situation where all factors are proportionately varied. That is, where the factors should be employed in rigidly fixed proportions to outcome a product.

(3) The variable factor units are homogenous that is, all the units of variable factors are of equivalent efficiency.

(4) Input prices stay unchanged

(5) The state of technology does not modify or remains similar at a particular point of time.

(6) The whole operation is merely for short-run, as in long-run every inputs are variable.

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