What Are the Different Phases in Law of Variable Proportion?
What Are the Different Phases in Law of Variable Proportion?
The different stages or phases in law of variable proportion are:
Stage 1: In this stage the curve of total product or TP increases at an increasing rate till a certain point. In the first stage the marginal product rises and falls whereas the average product keeps increasing. This stage is also called the increasing returns stage.
Stage 2: In the second stage of law of variable proportions the total product continues to increase at a diminishing rate till the time it reaches its maximum point of production and that signifies the end of the second stage. It is also known as the stage of constant returns.
Stage 3: In the third stage, there is a decrease in the total product with an increase in the variable factor of production. The marginal product of the variable factor becomes negative as a result. This stage is also called the stage of negative returns.
Also read:
- Total Product Average Product and Marginal Product
- Meaning of Demand and Factors Affecting Demand
- Law of Variable Proportion
- The Law of Diminishing Marginal Product and the Law of Variable Proportions
Stay connected with BYJU’S for more such questions and answers on various commerce topics.
The different stages or phases in law of variable proportion are:
Stage 1: In this stage the curve of total product or TP increases at an increasing rate till a certain point. In the first stage the marginal product rises and falls whereas the average product keeps increasing. This stage is also called the increasing returns stage.
Stage 2: In the second stage of law of variable proportions the total product continues to increase at a diminishing rate till the time it reaches its maximum point of production and that signifies the end of the second stage. It is also known as the stage of constant returns.
Stage 3: In the third stage, there is a decrease in the total product with an increase in the variable factor of production. The marginal product of the variable factor becomes negative as a result. This stage is also called the stage of negative returns.
Also read:
- Total Product Average Product and Marginal Product
- Meaning of Demand and Factors Affecting Demand
- Law of Variable Proportion
- The Law of Diminishing Marginal Product and the Law of Variable Proportions
Stay connected with BYJU’S for more such questions and answers on various commerce topics.
