Answer: The law of variable proportions is as follows: “If a producer increases the units of a variable factor while keeping other factors fixed, then initially the total product increases at an increasing rate, then it increases at a diminishing rate, and finally starts declining.”
What are the law of variable proportion?
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.
What is law of variable proportionate explain its stages using graph?
It is referred to as the law which states that when the quantity of one factor of production is increased, while keeping all other factors constant, it will result in the decline of the marginal product of that factor. Law of variable proportion is also known as the Law of Proportionality.
What do you mean by law of variable proportion explain with the help of schedule and graph?
The law of variable proportions shows a particular pattern of changes in output and is an explanation of short run production function where some factors remain unchanged. In the history of economics till the time of Alfred Marshall, there were three laws of return, increasing, constant and diminishing laws of return.
What are the three phases of law of variable proportion?
There is no difference between fixed and variable factors of production. There are 3 stages namely, increased returns, constant returns, and decreasing returns, and no stage is considered best for the long run. Q2. State the Law of Variable Proportion with its Assumptions.
What is stage of production?
stages of production. -Production within an economy can be divided into three main stages: primary, secondary and tertiary. theory of production. deal with the relationship between the factors of production and the output of goods and services.
