B Com Exam > B Com Videos > Business Economics & Finance > Law of Variable Proportion - Production Analysis, Business Economics & Finance
Law of Variable Proportion - Production Analysis, Business Economics & Finance Video Lecture | Business Economics & Finance - B Com
|
71 videos|80 docs|23 tests
|
FAQs on Law of Variable Proportion - Production Analysis, Business Economics & Finance Video Lecture - Business Economics & Finance - B Com
| 1. What is the law of variable proportion in production analysis? |  |
Ans. The law of variable proportion, also known as the law of diminishing returns, is an economic principle that states that as one input is increased while keeping other inputs constant, the marginal product of the variable input will eventually decrease. This means that at some point, adding more of the variable input will result in smaller increases in output.
| 2. How does the law of variable proportion affect production? | |
Ans. The law of variable proportion affects production by highlighting the point at which the addition of more variable inputs leads to diminishing returns. Initially, increasing the quantity of the variable input allows for greater output, but as the law suggests, there reaches a point where the marginal product starts to decrease. This indicates that the resources being added are no longer as productive, leading to inefficiencies in the production process.
| 3. Can you provide an example to illustrate the law of variable proportion? | |
Ans. Certainly! Let's consider a bakery that produces cakes. Initially, the bakery has one baker and one oven, and they can produce 10 cakes per day. By adding another baker, the production increases to 20 cakes per day. However, if a third baker is hired, the production may only increase to 25 cakes per day. In this example, the law of variable proportion is observed as the addition of each baker leads to a smaller increase in output.
| 4. What factors contribute to the law of variable proportion? | |
Ans. Several factors contribute to the law of variable proportion. Firstly, the law assumes that there are fixed inputs, such as machinery or facilities, which remain constant during the production process. Secondly, the law considers the efficiency of the variable input, as it may decrease as more units are added. Lastly, the law acknowledges the concept of diminishing marginal returns, which suggests that the productivity of additional units of the variable input will eventually decline.
| 5. How does the law of variable proportion impact decision-making in business? | |
Ans. The law of variable proportion provides valuable insights into decision-making in business. It helps businesses determine the optimal level of inputs to use in the production process to maximize output. By understanding the point of diminishing returns, businesses can avoid overinvestment in certain resources and allocate their resources more efficiently. This knowledge also assists in cost analysis and pricing decisions, as it allows businesses to estimate the impact of changing input levels on production costs and overall profitability.
Related Exams
About this Video
|
4.81/5 Rating |
|
Dec 23, 2024 Last updated |
Video Description: Law of Variable Proportion - Production Analysis, Business Economics & Finance for B Com 2024 is part of Business Economics & Finance preparation.
The notes and questions for Law of Variable Proportion - Production Analysis, Business Economics & Finance have been prepared according to the B Com exam syllabus.
Information about Law of Variable Proportion - Production Analysis, Business Economics & Finance covers all important topics for B Com 2024 Exam.
Find important definitions, questions, notes, meanings, examples, exercises and tests below for Law of Variable Proportion - Production Analysis, Business Economics & Finance.
Introduction of Law of Variable Proportion - Production Analysis, Business Economics & Finance in English is available as part of our Business Economics & Finance for B Com & Law of Variable Proportion - Production Analysis, Business Economics & Finance in
Hindi for Business Economics & Finance course. Download more important topics related with notes, lectures and mock test series for
B Com Exam by signing up for free.
Description
Video Lecture & Questions for Law of Variable Proportion - Production Analysis, Business Economics & Finance Video Lecture | Business Economics & Finance - B Com - B Com full syllabus preparation | Free video for B Com exam to prepare for Business Economics & Finance.
Information about Law of Variable Proportion - Production Analysis, Business Economics & Finance
Here you can find the meaning of Law of Variable Proportion - Production Analysis, Business Economics & Finance defined & explained in the simplest way possible.
Besides explaining types of Law of Variable Proportion - Production Analysis, Business Economics & Finance theory, EduRev gives you an ample number of questions to practice Law of Variable Proportion - Production Analysis, Business Economics & Finance tests,
examples and also practice B Com tests.
|
71 videos|80 docs|23 tests
|
|
Explore Courses for B Com exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
ppt
,Semester Notes
,study material
,Viva Questions
,Summary
,mock tests for examination
,Free
,past year papers
,Important questions
,Business Economics & Finance Video Lecture | Business Economics & Finance - B Com
,shortcuts and tricks
,Sample Paper
,practice quizzes
,Law of Variable Proportion - Production Analysis
,Exam
,Extra Questions
,Law of Variable Proportion - Production Analysis
,Business Economics & Finance Video Lecture | Business Economics & Finance - B Com
,Previous Year Questions with Solutions
,MCQs
,Law of Variable Proportion - Production Analysis
,Business Economics & Finance Video Lecture | Business Economics & Finance - B Com
,video lectures
,Objective type Questions
;
Study Law of Variable Proportion - Production Analysis, Business Economics & Finance on the App
Students of B Com can study Law of Variable Proportion - Production Analysis, Business Economics & Finance alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Law of Variable Proportion - Production Analysis, Business Economics & Finance,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Law of Variable Proportion - Production Analysis, Business Economics & Finance is prepared as per the latest B Com syllabus.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup