Q. 10 B5.0( 1 Vote )

Give the behaviou

Answer :

This is law of variable proportion. The law of variable proportion states that if we keep on increasing the units of variable factor (labour) with a fixed factor (Land), the behaviour of total product and marginal product is listed below –

Behaviour of Total Product - The total product increases at an increasing rate in the beginning, then increases at a diminishing rate and after a particular level of output it ultimately falls.

Behaviour of Marginal Product - The marginal product increases in the beginning, then it starts falling but remains positive and ultimately it continues to fall and also become negative.

It can be explained with the help of following table and graph.

Rate this question :

How useful is this solution?
We strive to provide quality solutions. Please rate us to serve you better.
Try our Mini CourseMaster Important Topics in 7 DaysLearn from IITians, NITians, Doctors & Academic Experts
Dedicated counsellor for each student
24X7 Doubt Resolution
Daily Report Card
Detailed Performance Evaluation
view all courses

Primary deficit eEconomics - Board Papers

Foreign exchange Economics - Board Papers

(a) Define “TradeEconomics - Board Papers