question_answer

                                                             Explain the 'law of variable proportions'. Use schedule.                          

Answer:

The law of variable proportions shows the impact on output when units of variable factors are increases keeping fixed factors constant in the short-run.                                                   The law states that if more and more units of a variable factor are employed with fixed factors, Total Physical Product (TPP) increases at an increasing rate in the beginning, then increases at a diminishing rate and finally starts failing. In other words, as units of variable factors are increased, marginal product first increases, reaches its maximum point, starts to fall, and eventually becomes negative.                Three Phases of Production              

Land(in acre)	Number of Labours	TPP(in qtls)	APP(in qtls)	MPP(in qtls)
1	0	0	-
1	1	2	2
1	2	6	3
1	3	12	4
1	4	16	4
1	5	18	3.6
1	6	18	3
1	7	14	2
1	8	8	1