Question

What does the law of variable proportion show. state the behaviour of marginal product according to this law?

Answer 1

Heya......

Law of variable proportion shows.....

That when more and more variable factors must be combined with fixed factors then the marginal product must rise at a time but eventually it starts to decline or be negative and to be zero...

Behavior of marginal product according to this is divided into three terms...

* Increasing return to factor....

When Marginal product rise this is called, increasing return....

* Diminishing return to factor....

When MP status to diminish after crossing the ideal fixed ratio....

* Negative return to factor....

When MP looses to be increased and starts to be negative....

Answer 2

State the behaviour of total product according to this law. The law of variable proportions state that as the quantity of one factor is increased, keeping the other factors fixed, the marginal product of that factor will eventually decline.