Question

explain the law of variable proportions with the help of total product and marginal product curve?​

Answer 1

The law of variable proportions is used to explain the relationship between Total Product and Marginal Product. It states that when only one variable factor input is allowed to increase and all other inputs are kept constant, the following can be observed:

When the Marginal Product (MP) increases, the Total Product is also increasing at an increasing rate. This gives the Total product curve a convex shape in the beginning as variable factor inputs increase. This continues to the point where the MP curve reaches its maximum.

When the MP declines but remains positive, the Total Product is increasing but at a decreasing rate. Thisgiveends the Total product curve a concave shape after the point of inflexion. This continues until the Total product curve reaches its maximum.

When the MP is declining and negative, the Total Product declines.

When the MP becomes zero, Total Product reaches its maximum.

Relationship between Average Product and Marginal Product

There exists an interesting relationship between Average Product and Marginal Product. We can summarize it as under:

When Average Product is rising, Marginal Product lies above Average Product.

When Average Product is declining, Marginal Product lies below Average Product.

At the maximum of Average Product, Marginal and Average Product equal each other...... Solved Example for You

Question: What are Returns to a Factor? What do you mean by the Law of Diminishing Returns?

Answer: Returns to a Factor is used to explain the behaviour of physical output as only one factor is allowed to vary and all other factors are kept constant. This is a short-run concept.

The law of diminishing returns to a factor states that as the variable factor is allowed to vary (increase), keeping all other factors constant, the Marginal Product first increases, reaches its maximum and then declines and even becomes negative.

Answer 2

• The law of variable factor proportion states that other factors being equal when the quantity of one factor of production is increased the total product will increase at an increasing rate initially which is at the Phase one. The marginal product also increases at an increasing rate.  
• In the second phase the total product increases but at a diminishing rate why a marginal product decreases but is not negative.
• During the third phase the total product falls while the marginal product is negative.
• This is because when when we employ more and more of variable factors to a fixed amount of fixed factors of production, with more and more of production the efficiency of the additional factor of production decreases.