what is law of variable proportion.

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Answer

Well law of variable proportions states that as we increase quality of only one input keeping the other inputs fixed total product initially increases at an increasing rate then at a decreasing rate and finally at a negative rate....

Answer

law of variable proportion is related with the short period when variable factor can  increased but not fixed factor so this results in change in the ratio of variable and fixed factor.For e.g. Variable factor = 10              Fixed factor      = 2 Ratio is 5:1Since only variable factor can change              Variable factor =20              Fixed factor      =2Ratio is 10:1 So ratio varies.

Answer

Law of Variable Proportions

The Law of Variable Proportions, also known as the Law of Diminishing Returns, is an economic principle that explains the relationship between the quantity of a variable input and the resulting output or production. It states that as more and more units of a variable input are added to a fixed amount of other inputs, the marginal product of the variable input will eventually decrease. In simpler terms, it suggests that there is a limit to how much an input can contribute to the overall output, and beyond that limit, the returns will diminish.

Key Points:
- Relationship between variable input and output
- Law of Diminishing Returns
- Marginal product decreases

Explanation:
The Law of Variable Proportions is based on the assumption that all other factors of production remain constant, except for the variable input being considered. These other factors, often referred to as fixed inputs, can include capital, land, and labor.

When the variable input is increased, initially, the output will increase at an increasing rate. This is known as the stage of increasing returns. At this stage, each additional unit of the variable input contributes more to the overall output than the previous unit.

However, as more units of the variable input are added, a point is reached where the marginal product begins to decrease. This marks the stage of diminishing returns. The marginal product refers to the additional output that is produced by each additional unit of the variable input.

Stages of Production:
1. Stage of Increasing Returns: In this stage, the marginal product is increasing. Each additional unit of the variable input contributes more to the total output.

2. Stage of Diminishing Returns: As more units of the variable input are added, the marginal product starts to decline. Each additional unit contributes less to the total output.

3. Stage of Negative Returns: Beyond a certain point, the marginal product becomes negative, indicating that the additional units of the variable input actually decrease the total output. This stage is also known as the stage of negative returns.

Visual Representation:
The Law of Variable Proportions can be represented graphically as an inverted U-shaped curve, known as the Total Product Curve. The increasing returns stage is represented by the upward-sloping part of the curve, the diminishing returns stage is represented by the peak, and the negative returns stage is represented by the downward-sloping part.

Conclusion:
The Law of Variable Proportions is a fundamental concept in economics that explains the relationship between the input of a variable factor and the resulting output. It demonstrates that there is a point at which adding more of a variable input leads to diminishing returns. Understanding this law is crucial for businesses and policymakers in optimizing production processes and resource allocation.

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