Question

Prepare a Marginal Product Schedule for increasing production when only one input is increased.
Indicate the phases of the Law of Variable proportion.

Answer 1

Answer:

According to the Law of Variable Proportion when only one input is increased while all other inputs are kept constant, Marginal Product and Total Product behave in the following manner:

(z) When Marginal product rises (till Point P1), Total product increases at an increasing rate (convex shape) (till point P).

(ii) When Marginal product falls and remains positive (Till point B1 ), total product increases at a diminishing rate (concave shape) (till point A).

(iii) When Marginal Product is zero (at point B1 ), Total Product is at its maximum and constant (At point B).

(iv) When Marginal product becomes negative (after point B1 ), total product falls (after point B).