Question

explain the law of variable propotion​

Answer 1

Govt. T.Romana College

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LAW OF VARIABLE PROPORTIONS

The law of variable proportions states that as the quantity of one factor is increased, keeping the other factors fixed, the marginal product of that factor will eventually decline. This means that upto the use of a certain amount of variable factor, marginal product of the factor may increase and after a certain stage it starts diminishing. When the variable factor becomes relatively abundant, the marginal product may become negative.

Assumptions: The law of variable proportions holds good under the following conditions:

Constant State of Technology: First, the state of technology is assumed to be given and unchanged. If there is improvement in the technology, then the marginal product may rise instead of diminishing.

Fixed Amount of Other Factors: Secondly, there must be some inputs whose quantity is kept fixed. It is only in this way that we can alter the factor proportions and know its effects on output. The law does not apply if all factors are proportionately varied.

Possibility of Varying the Factor proportions: Thirdly, the law is based upon the possibility of varying the proportions in which the various factors can be combined to produce a product. The law does not apply if the factors must be used in fixed proportions to yield a product.

Answer 2

the law of variables proportion considered a situation when land is fixed factor and labor is variable factor , and the farmer is producing wheat since land is a fixed factor , he can produce more of wheat only by using more and more of Labor . here comes and important question: with every additional unit of Labor employed on the Given land the same amount of additional output of wheat ? in other words will, MP of the labour remain constant for each and every additional unit of Labor emploed ? don't say 'maybe'. it can never happen. if MP of Labour was remain constant ( no matter how much of labor is employed ), then a country like India would help produced more and more of wheat using more and more of Labor on the same price of land. it would have never faced any food problem ( or the problem of unemployment ) . the fact of the matter is the that MP must eventually diminish. the logic is simple: always there is some ideas factors ratio ( optimum factor ratio or most to appropriate factor ratio ) .if L and K are the to factor and if K is constant , the ideal ratio is struck by varing the use of L. corresponding to the ideal ratio between L & K , MPL should be at East maximum . but once the idea ratio is reached, any increases in L would mean excessive employment of the variable factor. or, it would mean lesser and lesser availability of the fixed factor per unit of the variable factor. or , it would mean over exploitation of the fixed factor . accordingly, and MPL must start declining . we must ultimately imated reach a point when another additional unit of Labor ( on the same land ) add nothing to total output . implying that MPL become zero . in exceptional situation, MP may even be negative, as noted earlier. this is a essence of the law of variable proportion or rhe law of deminishing return ( also called the definition marginal product ) .

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