Explain law of variable proportion ,,, with ASSUMPTION..??
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Law of Variable Proportions:
"in a given state of technology, when the units of variable factor of production (L) are increased within the units of other fixed factors, the marginal productivity increases at increasing rate up to a point, after this point. it will become less and less"
Assumptions:
The assumptions of the law of variable proportion are given as below:
It is assumed that the technique of production should remain constant during production.
It operates in the short-run because in the long run, fixed inputs become variable.
Some inputs must be kept constant.
The various factors are not to be used in rigidly fixed proportions but the law is based upon the possibility of varying proportions. It is also called the law of proportionality.
It is assumed that all the units of variable factors of production are homogeneous in amount and quality.
It is assumed that labor is a single variable factor.
"in a given state of technology, when the units of variable factor of production (L) are increased within the units of other fixed factors, the marginal productivity increases at increasing rate up to a point, after this point. it will become less and less"
Assumptions:
The assumptions of the law of variable proportion are given as below:
It is assumed that the technique of production should remain constant during production.
It operates in the short-run because in the long run, fixed inputs become variable.
Some inputs must be kept constant.
The various factors are not to be used in rigidly fixed proportions but the law is based upon the possibility of varying proportions. It is also called the law of proportionality.
It is assumed that all the units of variable factors of production are homogeneous in amount and quality.
It is assumed that labor is a single variable factor.
Answered by
12
Heya......
@@ Law of variable proportion......
--->>> This States that , when more and more variable factors must combined with fixed factor then the marginal output from the addition suddenly rises but eventually a situation came when it starts to be decline or be zero and negative...
@@ Assumptions....
** Technology remains constant....
** Ideal ratio of variable and fixed factors can be changed....
** Variable factors must be homogeneous....
@@ Law of variable proportion......
--->>> This States that , when more and more variable factors must combined with fixed factor then the marginal output from the addition suddenly rises but eventually a situation came when it starts to be decline or be zero and negative...
@@ Assumptions....
** Technology remains constant....
** Ideal ratio of variable and fixed factors can be changed....
** Variable factors must be homogeneous....
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