In this article we will discuss about the law of variable proportions. In the short run we study the behaviour of output as more and more units of a variable factor (labour) are applied to a given quantity of a fixed factor. So, output becomes a function of labour input alone. If this is SO the short-run production function may [...]
Notes on The Law of Variable Proportions! The behaviour of the law of variable proportions or of the short-run production function when one factor is constant and the other variable, can also be explained in terms of the isoquant analysis. Suppose capital is a fixed factor and labour is a variable factor In Figure. 10. OA and OB are the [...]
Introduction to the Law of Variable Proportions: A firm increases output in the short run by varying only variable inputs. Thus, the firm's production function becomes: Q = f (L, K̅, O̅) In this production function, inputs K and O are assumed to be constant. Now for different values of labour (L), we get different values of output (Q). The [...]