explain the law of variable proportion …

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Sia ? 6 years, 2 months ago
Law of variable proportion states the impact of change in units of a variable factor on the physical output. When more and more units of a variable factor are combined with a fixed factor then total product increases at increasing rate in the beginning, then increases at decreasing rate and finally it starts falling.
<th scope="col">Machine</th> <th scope="col">Unit of Labour</th> <th scope="col">TPP (Unit)</th> <th scope="col">MPP(Unit)</th>Phase I : TP increases at an increasing rate.
Phase II : TP increases at diminishing rate.
Phase III : TP falls.
Behaviour of MP
Phase I: MP increases and becomes maximum.
Phase II: MP decreases and becomes zero.
Phase III: MP becomes negative
First Phase : TPP increases with increasing rate upto A point. MPP also increase and becomes maximum at point C.
Second Phase : TPP increases with diminishing rate and it is maximum at point B. MPP start to decline and becomes zero at D point.
Third Phase : TPP starts to decline and MPP becomes negative.
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