Law of variable proportion
Law of variable proportion states that when we combined both factor(fixed factor and variable factor) and only one factor is increased more and more and keeping all other factor remains constant,then initially the total product is increasing at increasing rate(marginal product is increasing) in the beginning,then increasing at decreasing rate(marginal product is decreasing)and finally total product is decreasing (marginal product is negative).
Assumption of law of variable proportion.
1.Only variable factor is increasing and all other factor remains constant.
2.This law is applied only in the production field only.
3.State of technology is remains constant because if technology is upgrade the marginal and average product is increasing.
4.It operate in short run production where fixed
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and variable factor are exits.
5. It is assumed that all the variable factor are equally efficient.
Example Land is the fixed factor and labour is the variable factor.If the producer increases the labour more and more the marginal product is start increasing,then decreasing and finally negative.
2.This law is applied only in the production field only.
3.State of technology is remains constant because if technology is upgrade the marginal and average product is increasing.
4.It operate in short run production where fixed
5. It is assumed that all the variable factor are equally efficient.
Schedule
Diagram
Example Land is the fixed factor and labour is the variable factor.If the producer increases the labour more and more the marginal product is start increasing,then decreasing and finally negative.
1 comment:
Great affort
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