Share this site with del.icio.us Share this site with digg Share this site with reddit Share this site with technorati Share this site with furl Share this site with stumbleupon Share this site with google Add this site to Yahoo Bookmarks Click here to add us to your favorites Subscribe to our Feed





law of proportions

Definition

Economic concept that an increase in returns from a manufacturing operation occurs when a change in the proportion in which factors of production are combined is toward the optimum; and a decrease occurs when that change is away from the optimum. For example, a fall in the cost of capital equipment in relation to the cost of labor would stimulate capital intensive production.

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z