Question

giving reason explain the law of variable proportion​

Answer 1

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

In the short run when output of a commodity is sought to be increased, the law of variable proportions comes into operation. ADVERTISEMENTS: Therefore, when the number of one factor is increased or decreased, while other factors are constant, the proportion between the factors is altered

Answer 2

hi

i) Phase I-Increasing Returns: This stage is in between O to N on TP curve. In this stage, MP tends to rise till OQ units of labour are used with the constant application of fixed factor. When MP is rising, TP tends to rise at an increasing rate. This occurs till point N on TP curve and point M on MP curve. This is a situation of increasing returns to a factor. (ii) Phase ll-Diminishing Returns: This stage is between N to R on TP curve. Beyond OQ units of labour, MP tends to decline and TP increases only at diminishing rate. This occurs between M and S on MP curve and between N and R on TP curve. This is a situation of diminishing return to a factor. (iii) Phase lll-Negative Return: This stage is beyond R on TP curve. Beyond OS units of labour, MP becomes negative. Now, TP starts declining. This is a situation of negative returns to a factor.