Question

Identify the three phases of the Law of Variable Proportions from the following and also give reason behind each phase :

$\begin{array}{cccccc}\text{Units of Variable Input}& 1& 2& 3& 4& 5\\ \text{Total Physcial Product (units)}& 10& 22& 30& 35& 30\end{array}$

Answer 1

The three phases of the law of variable proportions are identified from the behaviour of MPP:

$\begin{array}{cccccc}\text{Units of Variable Input}& 1& 2& 3& 4& 5\\ \text{TPP}& 10& 22& 30& 35& 30\\ \text{MPP (units)}& 10& 12& 8& 5& -5\end{array}$

(i) The first phase is upto two units because MPP is increasing.

(ii) The second phase is from three units to four units because MPP is falling but positive.

(iii) The third phase is from fifth unit because MPP is negative.