Question

I want the reasons for law of variable proportion for each phase in 2 to 3 line pointers,If it will be fine,it would be marked as brainliesy

Answer 1

Explanation:

Law of Variable Proportions occupies an important place in economic theory. This law is also known as Law of Proportionality.

Keeping other factors fixed, the law explains the production function with one factor variable. In the short run when output of a commodity is sought to be increased, the law of variable proportions comes into operation.Therefore, when the number of one factor is increased or decreased, while other factors are constant, the proportion between the factors is altered. For instance, there are two factors of production viz., land and labour.

Land is a fixed factor whereas labour is a variable factor. Now, suppose we have a land measuring 5 hectares. We grow wheat on it with the help of variable factor i.e., labour. Accordingly, the proportion between land and labour will be 1: 5. If the number of laborers is increased to 2, the new proportion between labour and land will be 2: 5. Due to change in the proportion of factors there will also emerge a change in total output at different rates. This tendency in the theory of production called the Law of Variable Proportion.

Definitions:

“As the proportion of the factor in a combination of factors is increased after a point, first the marginal and then the average product of that factor will diminish.” Benham

“An increase in some inputs relative to other fixed inputs will in a given state of technology cause output to increase, but after a point the extra output resulting from the same additions of extra inputs will become less and less.”

Answer 2

Law of Variable Proportions:-

The Law of Variable Proportions or Returns to a Factor plays an important role in the study of the Theory of Production. In this article, we will look at the meaning, explanation, stages, significance, and reasons behind the operation of the Law of Variable Proportions.

Reason for the Operation of the Law:-

In the short-term, we cannot vary all factors of production.

In this case, there is only one variable factor while others are fixed.

All other factors combine optimally to produce the maximum output.

Before the point of optimum combination, if the units of a variable factor increase, then the factor proportion becomes more suitable and it leads to more efficient utilization of the fixed factors. Therefore, the marginal physical product increases.

During the initial stages, the total product tends to rise at an increasing rate when the producer employs more units of a variable factor to the fixed factors.

Subsequently, beyond the point of optimum combination, if the producer employs more units of the variable factor, then the factor proportion becomes inefficient. Therefore, the marginal product of that variable factor declines.

Also, the producer sees a fall in the quantity of the fixed factor input per unit of the variable as he increases the units of the variable factor.

Therefore, successive units of the variable input add decreasing amounts to the total output as they have less fixed inputs to work with.