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Explain the Law of Variable Propotion
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∙ 13y ago
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What is Definition of law of variable proportion?
The law of variable proportion is basically a study of production functions. The factors used include fixed and variable factors.
What cause the application of law of variable proportion?
Causes of law of variable proportions
What is Table and diagram of law of variable proportion?
it elasticity
Law of variable proportion and law of returns to scale?
Under Law of variable proportion: only one variable input varies all other variable kept constant. Under Law of Return to Scale: All the variable inputs varies except the enterprise. Law of variable proportion is for short period; law of return to scale is for long period. Law of variable proportion shows the relationship if one variable input increase (eg: Labour) by keeping all other variable constant; total product and marginal product increase upto a certain point after that it will increase at a diminishing rate. it shows in three stage first increase then constant and then decrease. Law of return to scale shows the relationship between inputs and output at three different stages: 1. output increase more than inputs, 2. output and input are constant, 3. output is less than proportionate input.
What are the Limitations to the law of variable proportion?
Vrry smpl.all d assumption r limitation.
What is Definition of law of variable proportion?
The law of variable proportion is basically a study of production functions. The factors used include fixed and variable factors.
What cause the application of law of variable proportion?
Causes of law of variable proportions
What is Table and diagram of law of variable proportion?
it elasticity
Explain the law of variable proportions with suitable diagram?
in the process of production, in short run where producer changes few factors of production , i.e; varies the proportion between fixed factors and variable factors then production changes by three ways -at first production increases rapidly - at second production increases slowly - at third production decreases. the analysis of these procedures is known as law of variable proportion.
Law of variable proportion and law of returns to scale?
Under Law of variable proportion: only one variable input varies all other variable kept constant. Under Law of Return to Scale: All the variable inputs varies except the enterprise. Law of variable proportion is for short period; law of return to scale is for long period. Law of variable proportion shows the relationship if one variable input increase (eg: Labour) by keeping all other variable constant; total product and marginal product increase upto a certain point after that it will increase at a diminishing rate. it shows in three stage first increase then constant and then decrease. Law of return to scale shows the relationship between inputs and output at three different stages: 1. output increase more than inputs, 2. output and input are constant, 3. output is less than proportionate input.
What are the Limitations to the law of variable proportion?
Vrry smpl.all d assumption r limitation.
Does law of variable proportion apply only in agriculture?
No. It also applies to mathematics in general.
Is a proportion an example of a continuous variable?
No
Relationship between manipulated variable and responding variable?
direct proportion
A variable cost changes in proportion to changes in the volume in activity?
the answer is Variable Cost
What is diminishing marginal productivity explain with example?
the law diminishinf mean fixed cost and variable cost
Explain with diagram the law of variable proportion?
Sometimes referred to as the law of diminishing returns, the law of variable proportions is concerned with the effect of changes in the proportion of the factors of production used to produce output. As the proportion of one input increases relative to all other inputs, at some point there will be decreasing marginal returns from that input. Adding more units of an input, holding all other inputs constant, will at some point cause the resulting increases in production to decrease, or equivalently, the marginal product of that input will decline. Among the inputs held constant is the level of technology used to produce that output. This is an empirical law and is therefore a generalization about the nature of the production process and cannot be proven theoretically (see Friedman, 1976; Stigler, 1966). Applied to management, Friedman argues that the law of variable proportions requires firms to produce by using inputs in such proportions that there are diminishing average returns to each input in production.
