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State the different phases of change …

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State the different phases of change in total product and marginal product in law of variable proportion

    • Posted by Paridhi Jain 7 years ago

    CBSE > Class 11 > Economics
    • 2 answers

    Rupal Rajoriya 7 years ago

    Law of variable proportion state that as more and more of the variable factor is combined with the fixed factor, marginal product(MP) of the variable factor may initially increases and subsequently stablised but must decrease finally. Of course, initially, MP may arise owing to better coordination with the factors and better utilization of the fixed factor. Thus, we have 3 phases of production, viz., phase is increasing MP, decreasing MP and negative Mp. It is futher illustrated through the diagram in a situation. When a MP is increasing, rate and MP is negative TP should be declining of course, TP should be maximized when MP=0

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    Dhruv Sharma 7 years ago

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