JVM INSTITUTE BY LALIT KUKREJA JI 9213922047,9899009023

Chapter-5 PRODUCTION FUNCTION

PRODUCTION FUNCTION
 There exists some relationship between inputs and output of a firm.
 In Economics, such a relationship is known as production function.
 Production function is an expression of the technological relation between physical inputs and
output of a good.
 Symbolically: Ox = f (i1 i2, i3.............in)
{Where: Ox = Output of commodity x; f = Functional relationship; i1, i2,.... in = Inputs needed for Ox}
 Example of Production function Suppose a firm is manufacturing chairs with the help of two inputs,
say labour (L) and capital (K). Then, production function can be written as: Ochairs = f(L, K)
= f(L, K)
Difference between Short Run and Long Run

Basis Short run Long run

Meaning Short run refers to a period in Long run refers to a period in

which output can be changed by which output can be changed by
changing only variable factors. changing all factors of
production.

Classification Factors are classified as All factors are variable in the

variable and fixed factor in the long run.
short run.

Price In the short run, demand is In the long run, both demand
determination more active in price and supply play equal role in
determination as supply cannot price determination as both can
be increased immediately with be increased.
increase in demand.
Entry and There are barriers to entry Firms are free to enter and
Exit and the firms can shut down exit.
but cannot fully exit.

Difference between Variable Factors and Fixed Factors

Production is the result of combined efforts of the factors of production. These factors are broadly
classified as: (i) Variable Factors; (ii) Fixed Factors.

Basis Variable factors Fixed factors

Meaning Variable factors refer to those Fixed factors refer to those

factors, which can be changed factors which cannot be
in the short run. changed in the short run.

Relation with They vary directly with output. They do not vary directly with

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output output.

Example Raw material, casual labour, Building, plant and machinery,

power, fuel, etc. permanent staff, etc.

CONCEPT OF PRODUCT
 Product or output refers to the volume of goods produced by a firm or an industry during a specified
period of time.
 The concept of product can be looked at from three different angles: (i) Total Product3
(ii) Marginal Product
(iii) Average Product
Total Product (TP)
 Total product refers to total quantity of goods produced by a firm during a given period of time with
given number of inputs.
 For example, if 10 labours produce 60 kg of rice, then total product is 60 kg.
 In the short-run, a firm can expand TP by increasing only the variable factors. However, in the long-run,
TP can be raised by increasing both fixed and variable factors.
 Total Product is also known as 'Total Physical Product (TPP)'or 'Total Return' or 'Total Output.
Average Product (AP)
 Average product refers to output per unit of variable input.
 For example, if total product (TP) is 60 kg of rice, produced by 10 labours (variable input), then average
product will be 60 ÷ 10 = 6 kg.
 AP is obtained by dividing TP by units of variable factor.

 TP in terms of AP will be:

TP = AP x Units of Variable Factor
 Average Product is also known as Average Physical Product (APP)'or Average Return'.
Marginal Product (MP)
 Marginal product refers to addition to total product, when one more unit of variable factor is
employed.
Where,
MPn = Marginal product of nth unit of variable factor;
TPn = Total product of n units of variable factor;
TPn-1 = Total product of (n - 1) units of variable factor;
n = number of units of variable factor.
 For example, If 10 labours make 60 kg of rice and 11 labours make 67 kg of rice, then MP of 11 th labour
will be:
MP11=TP11-TP10
MP11=67-60 = 7kg

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 Marginal Product (MP) is also known as 'Marginal physical product (MPP)' or 'Marginal Return',
One More way to Calculate MP
 We know, MP is the change in TP when one more unit of variable factor is employed. However, when
change in variable factor is greater than one unit, then MP can be calculated as:


 Suppose 2 labours produce 60 units and 5 labours produce 90 units, then MP will be:

or
TP is summation of MP
 Total Product can also be calculated as the sum of marginal product.
 It means, TPn = NU1 + MP2 + MP3 +.............MPn
or, TP = ΣMP

LAW OF VARIABLE PROPORTIONS

 Law of Variable Proportions or LVP is one of the most important laws of production.
 It shows the nature of rate of change in output due to a change in variable factors.
 In the short run, when one input is variable and all other inputs are fixed, the firm's production function
exhibits the law of variable proportions.
 This law shows the nature of rate of change in output due to a change in only one variable factor of
production.
Statement of Law
 Law of Variable Proportions (LVP) states that as we increase quantity of only one input keeping
other inputs fixed, total product (TP) initially increases at an increasing rate, then at a decreasing
rate and finally at a negative rate.
 Law of Variable Proportions is also known as 'Law of Returns' or 'Law of Returns to Factor' or 'Returns
to Variable factor'. Returns to a factor refers to the resultant increase in the total product when only one
factor is increased, keeping all other factors fixed.
Assumptions of Law of Variable Proportions
1. It operates in short run, as factors are classified as variable and fixed factor;
2. The law applies to all fixed factors including land;
3. Under law of variable proportions, different units of variable factor can be combined with fixed
factor;
4. This law applies to the field of production only;
5. The effect of change in output due to change in variable factor can be easily determined;
6. It is assumed that, factors of production become imperfect substitutes of each other beyond a certain
limit;
7. The state of technology is assumed to be constant during the operation of this law;

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8. It is assumed that all variable factors are equally efficient.
Let us now understand the law with the help of an Example
Suppose, a farmer has 1 acre of land (fixed factor) on which he wants to increase the production of wheat with the
help of labour (variable factor). When he employed more and more units of labour, initially output increased at an
increasing rate, then at a decreasing rate and finally, at a negative rate.
This behaviour of output is shown in Table 5.1.
Table 5.1: Law of Variable Proportions

Fixed factor Variable TP MP Phase

factor (units)
(Land in (units)
acres) (labour)

1 1 10 10 1st (Increasing returns

to a factor)
1 2 30 20

1 3 45 15 2nd (Diminishing
returns to a factor)
1 4 52 7
1 5 52

1 6 48 -4 3rd (Negative returns to

a factor)

Factor ratio keeps on changing: It must be noted that production is carried out under conditions of 'variable
proportions', i.e. proportion between fixed and variable factor changes with every additional variable factor. In
Table 5.1, the ratio between land and labour changes from 1:1 to 1:2, then to 1:3 and so on, with addition of more
and more units of labour.

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According to the law of variable proportion , the change in TP and MP can be classified into the
following phases.
• Phase 1 (Between O to Q) TP increases at an increasing rate and MP also increases.
• Phase 2 (Between Q to M) TP increases at decreasing rate and MP falls.
This phase ends when MP becomes zero and TP reaches its maximum point.
• Phase 3 (Beyond point M) TP starts decreasing and MP not only falls, but also becomes negative.
• Point of Inflexion (Point Q) Point 'Q' is known as point of inflexion as curvature of TP curve changes
at this point
Reasons for Law of Variable Proportions
The various reasons for 3 phases of law of variable proportions are:
Reasons for Increasing Returns to a Factor (Phase 1)
There are three important reasons for the operation of increasing returns to a factor:
1. Better Utilization of the Fixed Factor:
 In the first phase, the supply of the fixed factor (say, land) is too large, whereas variable
factors are too few. So, the fixed factor is not fully utilised.
 When variable factors are increased and combined with fixed factor, then fixed factor is
better utilised and output increases at an increasing rate.
2. Increased Efficiency of Variable Factor:
 When variable factors are increased and combined with the fixed factor, then former is
utilised in a more efficient manner.
 At the same time, there is greater cooperation and high degree of specialization between
different units of the variable factor.
2. Indivisibility of Fixed Factor:
 Generally, the fixed factors which are combined with variable 'factors are indivisible. Such
factors cannot be divided into smaller units.
 Once an investment is made in an indivisible fixed factor, then addition of more and more
units of variable factor, improves the utilisation of fixed factor. The increasing returns apply
as long as optimum level of combination between variable and fixed factor is achieved.
Reasons for Diminishing Returns to a Factor (Phase 2)
The main reasons for occurrence of diminishing returns to a factor are:
1. Optimum Combination of Factors:
 Among the different combinations between variable and fixed factor, there is one optimum
combination, at which total product (TP) is maximum.
 After making the optimum use of fixed factor, the marginal return of variable factor begins to
diminish. For example, if a machinery (fixed factor) is at its optimum use, when 4 labours
are employed, then addition of one more labour will increase TP by very less amount and MP
will start diminishing.
2. Imperfect Substitutes:
 Diminishing returns to a factor occurs because fixed and variable factors are imperfect
substitutes of one another.
 There is a limit to the extent of which one factor of production can be substituted for another.
 For example, labour can be substituted in place of capital or capital can be substituted in
place of labour till a particular limit. But, beyond the optimum limit, they become imperfect
substitutes of one another, which leads to diminishing returns.

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Reasons for Negative Returns to a Factor (Phase 3)

The main reasons for occurrence of negative returns to a factor are:
1. Limitation of Fixed Factor:
 The negative returns to a factor apply because some factors of production are of fixed nature,
which cannot be increased with increase in variable factor in the short run.
2. Poor Coordination between Variable and Fixed Factor:
 When variable factor becomes too excessive in relation to fixed factor, then they
obstruct(stop) each other.
 It leads to poor coordination between variable and fixed factor.
 As a result, total output falls instead of rising and marginal product becomes negative.
3. Decrease in Efficiency of Variable Factor:
 With continuous increase in variable factor, the advantages of specialization and division of
labour start diminishing.
 It results in inefficiencies of variable factor, which is another reason for the negative returns
to eventually set in.

Law of Variable Proportions is an extension of another famous law, known as 'Law of Diminishing
Returns'.
Law of diminishing returns states that when more and more units of a variable factor are employed
with a fixed factor, then marginal product of the variable factor must fall. It means that marginal
returns diminish when proportion between variable and fixed factors increases beyond a point. This law
is also known as Law of Diminishing Marginal Product.
Let us understand this with Table 5.2 and Fig 5.2.
Table 5.2: Law of Diminishing Returns
Fixed factor Variable TP (in MP
(Land) factor units) (in units)
(in acres) (labour)
1 1 12 12
1 2 22 10
1 3 30 8
1 4 36 6
1 5 40 4

As seen in Table 5.2 and Fig. 5.2, MP falls when more and more units of variable factor (labour) are
employed with the fixed factor (land). This law considers only the falling phases of MP and ignores the

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phase of increasing MP.

RELATIONSHIP BETWEEN TP AND MP

The relationship between TP and MP can be better understood with the help of following schedule and
diagram:
Table 5.3: Relationship between TP and MP
Fixed factor Variable TP MP
(Land) (in factor (labour) (units) (units)
acres) (in units)
1 0 0 —
1 1 10 10
1 2 30 20
1 3 45 15
1 4 52 7
1 5 52 0
1 6 48 -4

The relationship between TP and MP can be summarised as under:

1. As long as TP increases at increasing rate (till point 'P'), MP also increases.
2. When TP increases at diminishing rate, MP decreases. It starts happening when 3 units of labour are
employed and continues till 5 units of variable factor.
3. When TP reaches its maximum point (point M), MP becomes zero (point N), i.e. at 5th unit of variable
factor.
4. When TP starts decreasing, MP becomes negative, i.e. from 6th unit of variable factor.

RELATIONSHIP BETWEEN AP AND MP

The relationship between AP and MP is discussed through Table 5.4 and Fig. 5.4:
Table 5.4: Relationship between AP and MP
Fixed factor Units of AP (units) MP (units)
(Land) Variable
(in acres) factor
(labour)
1 0 — —
1 1 10 10
1 2 15 20
1 3 15 15
1 4 13 7

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1 5 10.40 0
1 6 8 -4

The relationship can be summarised as under:

1. As long as MP is more than AP, AP rises, i.e. up to 2nd unit of variable factor.
2. When MP is equal to AP, AP is at its maximum, i.e. at 3rd unit of variable factor.
3. When MP is less than AP, AP falls (from 4th unit of variable factor).
4. Thereafter, both AP and MP fall, but MP becomes negative, whereas, AP remains positive. MP
falls at a faster rate in comparison to fall in AP.

It must be noted that both AP and MP are derived from TR AP is calculated on the basis of all the units,
whereas, MP is based on the additional unit only. So, it is the MP which pulls the AP up or down.
HOT…..
Q.1. Why MP curve cuts AP curve from its top?
Ans. This is because, when AP rises, MP > AP; when AP falls, MP < AP. Accordingly, it is only when AP is
constant at its top, that AP - MP. Implying that MP curve cuts AP curve from its top.

Q.2. AP may continue to rise even when MP starts declining. Why?

Ans. This happens so long as declining MP is greater than the existing AP. Example: In Table 2, MP declines
from 28 to 24 when 4th unit of labour is employed. Yet the corresponding AP increases from 16 to 18.
Simply because, even when MP declines to 24 it still is greater than the existing average product which
is 16 (when 3 units of labour are employed). In Fig. 2, this happens corresponding to the stretch 'ea' on
MP curve and the stretch 'fa' on AP curve.

Q.3. Do you agree that TP must decrease in a situation of diminishing returns?

Ans. No. TP should not be decreasing in a situation of diminishing returns. In a situation of diminishing
returns, MP decreases (like from 10 to 9 to 8). It means less and less units of output are added to TP.
Nevertheless, TP must be rising.TP decreases only in a situation of negative returns.

Q.4. Should both TP and MP be declining in a situation of diminishing returns?

Ans. No. In a situation of diminishing returns, only MP should be declining. And, when MP is decreasing, TP
should be increasing, though at a diminishing rate.

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FIGURE

A. Multiple Choice Questions: Choose the Correct Answer (1 mark each)

1. Per unit production of the variable factor is called:
(a) total product (b) average product
(c) marginal product (d) none of these

2. Which of the following equations is correct?

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Q Q
(a) AP = (b) MP =
L ∆L
∆Q
(c) MP = (d) none of these
L

AP = Average product
Q = Output
L = Variable factor
MP = Marginal product

3. Which of the following equations is correct?

(a) MP = TPn - TPn-2 (b) AP = TP x L
AP ∆ TP
(c) TP = (d) MP =
L ∆L

4. Variable proportions type production function exists:

(a) when with change in the level of output there is change in factor ratio
(b) when it is possible to increase output by increasing the application of the variable factor
(c) when scale of production changes with change in the level of output
(d) both (a) and (b)

5. What will be the state of total output when marginal product turns negative?
(a) Total output will begin to fall
(b) Total output will begin to rise
(c) Total output will remain constant
(d) None of these

6. When average product (output) increases, marginal product is:

(a) equal to average product (b) greater than average product
(c) less than average product (d) zero

7. Which one of the following leads to the law of variable proportions?

(a) Some factors are constant
(b) Some factors are more efficient than others
(c) Specialisation of factors
(d) None of these

8. In case of diminishing returns to a factor:

(a) total product increases at diminishing rate
(b) total product increases at increasing rate
(c) marginal product diminishes
(d) both (a) and (c)

9. When more and more units of a variable factor are combined with the fixed factor, the resulting law is called:
(a) Law of Variable Proportions
(b) Law of Increasing Returns to Scale
(c) Law of Decreasing Returns to Scale
(d) Law of Constant Returns to Scale

10. Stage of negative returns sets in when:

(a) MP is diminishing (b) MP is rising

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(c) MP is negative (d) none of these

11. When MP cuts AP at its highest point:

(a) MP > AP (b) MP < AP
(c) MP = AP (d) all of these

12. When MP is decreasing, TP increases:

(a) at an increasing rate (b) at a decreasing rate
(c) at a constant rate (d) none of these

13. Physical product refers to production as measured in terms of:

(a) physical units (b) monetary units
(c) utility (d) value

14. When total product is maximum then marginal product:

(a) decreases (b) increases
(c) is also maximum (d) is zero

15. When MP is constant:

(a) TP is also constant
(b) TP is zero
(c) TP is increasing at a constant rate
(d) TP is decreasing at a constant rate

16. Point of inflexion refers to that point from where:

(a) slope of TP changes
(b) TP stops increasing at an increasing rate
(c) slope of AP changes
(d) both (a) and (b)

17. Marginal product curve is a:

(a) U-shaped curve
(b) inverse U-shaped curve
(c) rectangular hyperbola
(d) none of these

18. When total product is 100 units and units of variable factor are 4, average product will be:
(a) 25 (b) 400
(c) 96 (d) 104

19. During short period, production can be increased through:

(a) greater application of fixed factors
(b) greater application of variable factors
(c) greater application of all the factors of production
(d) none of these

20. Stages of production are the consequences of:

(a) Law of Diminishing Marginal Rate of Transformation
(b) Law of Diminishing Marginal Utility
(c) Law of Variable Proportions
(d) Law of Diminishing Returns to Scale

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Answers
1. (b) 2. (a) 3. (d) 4. (d) 5. (a) 6. (b) 7. (a) 8. (d) 9. (a) 10. (c)
11. (c) 12. (b) 13. (a) 14. (d) 15. (c) 16. (d) 17. (b) 18. (a) 19. (b) 20. (c).

Read the following statements carefully. Write 'True' or 'False' with a reason.

1. Production function is only a technical relationship between physical inputs and physical output.
Ans. True. Production function is only a technical relationship between physical inputs and physical output. This tells us how best
resources can be utilised for maximising output.

2. TP is obtained when MP of different units of output is added.

n
Ans. True. TP = ∑ MP i or TP is the summation of MP corresponding to each unit of the variable factor employed in production.
i=1

3. In the short period, production is done only by using the variable factors.
Ans. False. In the short period production is done by using the both fixed and variable factors of production. In fact, short period is
a period of time when some factors are fixed.

4. Law of variable proportions must operate, even when all factors of production are variable.
Ans. False. Law of variable proportions operates basically because of the fixity of some factors.

5. Diminishing returns to a variable factor occur because the producer fails to buy the variable factor in the required
quantity.
Ans. False. Diminishing returns to a variable factor occur because the producer fails to maintain the ideal ratio between the factors,
as the use of fixed factors cannot be changed during the short period.

6. Increasing returns to a factor occur because the fixed factor is excessively used in production.
Ans. False. Increasing returns to a factor occur because the fixed factor remains under-utilised.

7. Diminishing returns to a factor occur simply because supply of all factors cannot be increased.
Ans. True. It is because some factors are fixed that output is increased by using more and more units of the variable factor. It
disturbs the ideal factor ratio and diminishing returns set in.

8. Law of variable proportions operates only if factor ratio happens to change.

Ans. True. Factor ratio ought to change in case of law of variable proportions. It is precisely because the proportion of factors
varies that the law is named as the law of variable proportions.

9. Diminishing returns to a factor occurs because fixed factor cannot be used as much as the variable factor.
Ans. True. As more and more units of a variable factor are combined with the fixed factor, the latter gets over utilised. Hence, the
diminishing returns.

10. It is because of the law of variable proportions that MP curve makes an inverted-U.
Ans. True. In accordance with the law of variable proportions, MP of the variable factor (combined with the fixed factor) initially
tends to rise, subsequently stabilises and finally must fall. Hence, MP curve forms an inverted-U.

11. TP must rise as more and more units of a variable factor are combined with the fixed factor.
Ans. False. As more and more units of the variable factor are combined with the fixed factor, TP will rise only so long as MP is
positive. Once MP becomes negative, TP will start falling.

12. When MP is declining, TP must also decline.

Ans. False. When MP is declining TP should increasing, though at a diminishing rate. It is only when MP is negative that TP must
decline.

13. AP can rise even when MP is falling.

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Ans. True. AP can rise when MP is falling.This happens in a situation when falling MP is greater than the existing AP.

14. MP = AP when AP is maximum.

Ans. True. AP is at its maximum when MP = AP. In this case, MP curve cuts AP curve from its top.

15. If AP is falling, MP must also fall.

Ans. True. If AP is falling, MP must also fall. Because, unless MP (showing additions to TP) is falling, AP (showing average
output) will not fall.

16. MP is the rate of TP.

Ans. True. MP is the rate of TP. Increasing MP implies TP is increasing at increasing rate. Diminishing MP implies that TP is
increasing at diminishing rate.

17. It is more profitable for the producer to be in a stage of increasing returns than the stage of diminishing returns.
Ans. False. A producer would maximise his profits only in the stage of diminishing returns when MP is declining but is still
positive.

18. When there are diminishing returns to a factor, total product always decreases. [CBSE Delhi 2009]
Ans. False. This is because in a situation of diminishing returns to a factor marginal product tends to fall. Falling marginal product
implies that total product should be increasing, though at a diminishing rate. It simply implies diminishing slope of TP (total
product) curve, NOT diminishing TP.

19. Total product will increase only when marginal product increases. [CBSE Delhi 2009]
Ans. False. Total product will also increase when marginal product decreases. In that case, total product increases at diminishing
rate. However, MP should not be negative.

20. Increase in total product always indicates that there are increasing returns to a factor. [CBSE Delhi 2009]
Ans. False. It is not necessary that increase in total product always indicates that there are increasing returns to a factor because in
the stage of diminishing returns to a factor also, total product increases but at a diminishing rate.

21. When there are diminishing returns to a factor, marginal and total product both always fall. [CBSE Delhi 2009]
Or
When there are diminishing returns to a factor, marginal product and total product both always diminish.
[CBSE (AI) 2009]
Ans. False. This is because when there are diminishing returns to a factor, marginal product diminishes but total product increases
at the diminishing rate.

22. When marginal product falls, average product will also fall. [CBSE Delhi 2010]
Ans. False. Average product can rise even when marginal product falls. See AP and MP corresponding to output range MQ in Fig.
4. AP rises corresponding to falling MP so long as falling MP is greater than the existing AP.

23. When there are diminishing returns to a factor, total product first increases and then starts falling.
[CBSE Delhi 2010]
Ans. False. This is because in a situation of diminishing returns to a factor marginal product tends to fall. Falling marginal product
implies that total product should be increasing, though at a diminishing rate. It simply implies diminishing slope of TP (total

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product) curve, NOT diminishing TP.

24. Total product always increases whether there is increasing returns or diminishing returns to a factor.
[CBSE (Al) 2010]
Ans. True, the statement is true. This is because in a situation of increasing returns to a factor, marginal product tends to rise.
Accordingly, total product should be increasing at an increasing rate. Under diminishing returns to a factor, marginal product
tends to fall. Falling marginal product implies that total product should be increasing, though at a decreasing rate.

25. Average product will increase only when marginal product increases. [CBSE (Al) 2013]
Ans. False. Average product can rise even when marginal product falls. See AP and MP corresponding to output range MQ in Fig.
4.

26 . under diminishing returns to a factor, total product continues to increase till marginal product reaches zero.
[CBSE (AI) 2013]
Ans. True. Under diminishing returns to a factor, marginal product tends to fall. Falling marginal product implies that total product
increases at a diminishing rate. TP is maximum when MP = 0.

SOME PRACTICAL QUESTION

Q.1 Complete the following table, on the assumption that for each additional unit of the variable factor, marginal product
decreases by 5 units of output.
Units of Labour TP AP MP
— — — —
— — — —
— — — —
— — — —

Ans.
Units of Labour TP AP MP
1 10 10 10
2 15 7.5 5
3 15 5 0
4 10 2.5 -5

Q.2 From the following table, find TP and MP of labour assuming that TP of labour is zero at zero level of employment of
labour.
Units of Labour 1 2 3 4 5
AP 15 14 13 12 11

Ans.
Units of Labour AP TP MP
1 15 15 15
2 14 28 13
3 13 29 11
4 12 48 9
5 11 55 7

Q3. Fill in the blanks:

Units of Fixed Factor Units of Variable Factor (Labour) TPL APL MPL
(Land)
10 0 0 — —
10 1 60 — —
10 2 — 85 —
10 3 — — 100
10 4 300 — —
10 5 — — 50
10 6 — 75 —A

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Ans.
Units of Fixed Factor Units of Variable Factor (Labour) TPL APL MPL
(Land)
10 0 0 — —
10 1 60 60 60
10 2 170 85 110
10 3 270 90 100
10 4 300 75 30
10 5 350 70 50
10 6 450 75 100

Q4. Complete the following table:

Labour (Units) Total Product Average Product Marginal Product

1 40 — —
2 — — 60
3 — — 50
4 180 — —
5 — 36 —
6 — — -18

Ans.
Labour (Units) Total Product Average Product Marginal Product
1 40 40 40
2 100 50 60
3 150 50 50
4 180 45 30
5 180 36 0
6 162 27 -18

Q5. Complete the following table. Identify the point where TP tends to increase at the diminishing rate.
Units of Labour TP AP MP
1 — — 100
2 — — 120
3 — — 80
4 — — 60
5 — — 0
6 — — -60
Ans.
Units of Labour TP AP MP
1 100 100 100
2 220 110 120
3 300 100 80
4 360 90 60
5 360 72 0
6 300 50 -60

It is when 3rd unit of the variable factor is applied that TP tends to increase at the diminishing rate.

CBSE Questions (Past 4 years) and Reference to the Text for Answers

1. Define production function.

[CBSE (Al) 2011; CBSE (F) 2013, 2014]
2. Giving reason, explain the behaviour of total product under the law of variable proportions. Use diagram.
[CBSE (F) 2011]
3. What does the law of variable proportions show? State the behaviour of total product according to this law.
[CBSE Delhi 2012]
4. What does the law of variable proportions show? State the behaviour of marginal product according to this law.

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JVM INSTITUTE BY LALIT KUKREJA JI 9213922047,9899009023
[CBSE (Al) 2012]
5. State the phases of changes in total product in the law of variable proportions. Also explain the reason behind each phase.
Use diagram.
[CBSE (F) 2012]
Or
State the different phases of change in total product according to the law of variable proportions. Use diagram.
[CBSE (F) 2014]
6. Explain the law of variable proportions with the help of total product and marginal product curves.
[CBSE Delhi 2013]
Or
Explain the law of variable proportions. Use diagram.
[CBSE (F) 2013]
7. Complete the following table:
[CBSE Delhi 2013]
Units of Labour Average Product (Units) Marginal Product (Units)
1 8 —
2 10 —
3 — 10
4 9 —
5 — 4
6 7 —

8. Complete the following table:

[CBSE Delhi 2013]
Units of Labour Average Product (Units) Marginal Product (Units)
1 16 —
2 20 —
3 — 20
4 18 —
5 — 8
6 14 —

9. How is marginal product calculated?

[CBSE (F) 2013]
10. Give meaning of 'returns to a factor'.
[CBSE Delhi 2014]
11. State the behaviour of marginal product in the law of variable proportions. Explain the causes of this behaviour.
[CBSE Delhi 2014]
12. Define marginal product.
[CBSE (Al) 2014]
13. Giving reasons, explain the 'Law of Variable Proportions'.
[CBSE (AI) 2014]

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