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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.
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How do you explain the law of variable proportion?
Explain the Law of Variable Propotion
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 the law of returns to scale?
THE LAW OF RETURNS TO mean that law in which we study about the different period of the production in which increasing , decreasing , and constant returns to scale is studied
What is Table and diagram of law of variable proportion?
it elasticity
How do you explain the law of variable proportion?
Explain the Law of Variable Propotion
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 the law of returns to scale?
THE LAW OF RETURNS TO mean that law in which we study about the different period of the production in which increasing , decreasing , and constant returns to scale is studied
What is Table and diagram of law of variable proportion?
it elasticity
What is the difference between law of return to variable proportion and law or return to scale?
There is a big difference between both the laws.The basi difference between them is that i dont know 1st but i know the 2nd one
Why LAC is U shaped?
LAC is u shaped due to the law of return to scale. In the long run the law of returns to scale operates. i.e. in the beginning, with the increase in variable and factors factors of production, the returns to scale comes in the rate of increasing.that means with the increase in factors of production, the specialization of factors of production becomes possible resulting higher productivity.
Why is lac curve u-shaped?
LAC is u shaped due to the law of return to scale. In the long run the law of returns to scale operates. i.e. in the beginning, with the increase in variable and factors factors of production, the returns to scale comes in the rate of increasing.that means with the increase in factors of production, the specialization of factors of production becomes possible resulting higher productivity.
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.
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.
What is the law of diminishing returns?
the law of diminishing returns states that as a set of variable factors is added to a set of fixed factor, the marginal product and average product will first increase then eventually decrease
