Explain the behaviour of tpp under the law of variable proportion
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Law of variable proportion refers to the behaviour of output produced by changing one of the variable factor keeping all other factor remain constant...
Or
Law of variable variable is also known as Returns to a factor...it means the production of commodities by changing one variable factor ( Labour ) and all other factor being constant ( Land , Plant etc )...
Or
Law of variable proportion states that Marginal product of an input factor initially rises and after certain level of output it starts declining ( dimnishing or falling )....
Total product ( TP ) is the sum of all the output produced by using the combination of variable factor and fixed factor...
MP ( Marginal product ) is defined as the change in TP when one additional or More or extra unit of variable factor is being employed or applied or used...
When quantity of variable factor is being increases , Total product ( TP ) intially increases with increasing rate , MP also increses...This is the stage of increasing retuens , In this stage the ideal ratio reached...Every producer desire to produce output at this ratio..
When quantity of variable factor increses after the ideal ratio , MP starts falling and TP still increses but at decreasing rate..This is stage ( phase ) of Diminising or decreasing returns...
while increasing the Variable factor after the stage of diminishing return , MP become negative and TP starts decreaing...This is the stage of negative returns..
Or
Law of variable variable is also known as Returns to a factor...it means the production of commodities by changing one variable factor ( Labour ) and all other factor being constant ( Land , Plant etc )...
Or
Law of variable proportion states that Marginal product of an input factor initially rises and after certain level of output it starts declining ( dimnishing or falling )....
Total product ( TP ) is the sum of all the output produced by using the combination of variable factor and fixed factor...
MP ( Marginal product ) is defined as the change in TP when one additional or More or extra unit of variable factor is being employed or applied or used...
When quantity of variable factor is being increases , Total product ( TP ) intially increases with increasing rate , MP also increses...This is the stage of increasing retuens , In this stage the ideal ratio reached...Every producer desire to produce output at this ratio..
When quantity of variable factor increses after the ideal ratio , MP starts falling and TP still increses but at decreasing rate..This is stage ( phase ) of Diminising or decreasing returns...
while increasing the Variable factor after the stage of diminishing return , MP become negative and TP starts decreaing...This is the stage of negative returns..
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