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  • Ch-6 Product Return To Factor

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    shaurya goyal
    7 views13 pages
    The document discusses the law of variable proportions and production functions. It defines key terms like total physical product (TPP), average physical product (APP), and marginal physical product (MPP). It explains that under the law of variable proportions: 1) Initially, as the variable factor increases, both TPP and MPP increase at an increasing rate. 2) After a point, further increases in the variable factor cause MPP to decline. 3) Eventually additional units of the variable factor lead to diminishing returns, where MPP becomes negative and TPP increases at a decreasing rate.

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    returns to a factor

    Original Title

    Ch-6 Product return to factor

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    The document discusses the law of variable proportions and production functions. It defines key terms like total physical product (TPP), average physical product (APP), and marginal physical product (MPP). It explains that under the law of variable proportions: 1) Initially, as the variable factor increases, both TPP and MPP increase at an increasing rate. 2) After a point, further increases in the variable factor cause MPP to decline. 3) Eventually additional units of the variable factor lead to diminishing returns, where MPP becomes negative and TPP increases at a decreasing rate.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    7 views13 pages

    Ch-6 Product Return To Factor

    Uploaded by

    shaurya goyal
    The document discusses the law of variable proportions and production functions. It defines key terms like total physical product (TPP), average physical product (APP), and marginal physical product (MPP). It explains that under the law of variable proportions: 1) Initially, as the variable factor increases, both TPP and MPP increase at an increasing rate. 2) After a point, further increases in the variable factor cause MPP to decline. 3) Eventually additional units of the variable factor lead to diminishing returns, where MPP becomes negative and TPP increases at a decreasing rate.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 13

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    Facteus Puoductiow.
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    SHORT RUN

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    # TYPES OF Peoove
    ToTA PHYSCAL PRODULT

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    at a' givan del footoulrato
    TPP z APP x V.E
    TPP zsMPP

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    MARGINA PHYS CAL PRODULT


    3)MARGINAL
    TPP- 1Pn
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    EAw OF VARIALE PROPOR TLONAÍS

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    Land Labou TPP MPP

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    kcasl factaulvaiatle costant Hman
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    nds toU
    Date
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    [Et) Bettte cooudtnationbetwn foctous


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    V. acsc

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    y becau
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    82
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    AP is ekal to MP. ming that MP cuect

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    thau eiiting t. delining MPs

    Can tte laus vaiabl jhotione b


    fasßond?2
    es
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    Date :
    Page

    )Aso, the abpicabiltty the las can be


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