This presentation discusses the law of variable proportions, including: - Defining production functions and the factors of labor, capital, and land. - Describing the law of variable proportions as predicting the consequences of varying fixed and variable production factors. - Outlining the three stages of production under this law: increasing returns, diminishing returns, and negative returns. - Explaining the key differences between the law of variable proportions, which looks at varying one factor while holding others fixed, and returns to scale, which increases all factors simultaneously.

1. Presentation on Topic :
Law of Variable
Proportion
Presented By : Sangeeta Saini
M.Com(P)
641

2.  Production function.
 Types of production
function.
 Law of variable
proportion.
 Assumptions.
 Three stages of
production.
 Conditions of
applicability.
 Difference between law
of variable proportion
and return to scale.
 Conclusion.

3. PRODUCTION FUNCTION
Y= F(L,K,S)
Y= production
F=function
L=labour
K=capital
S=land

4. Types of production
function
Law of
variable
proportion.
Law of
returns.
Change in
proportion.

5. Law of variable
proportion
The law of variable proportions
is that law which predict the
consequences of varying the
proportions in which the fixed
and variable factors of
production are used.

6. Assumptions
One of the factor is variable while all
other factors are fixed.
All units of variable factors are
homogeneous.
There is no change in the technique of
production.
Factors of production can be used in
different proportion

7. Units of land Units of labour Total product Marginal
product
Average
product TP
L
(1) (2) (3) (4) (5)
1
1
1
1
1
2
3
4
2
5
9
12
-
3
4
3
2
2.5
3
3
1
1
1
5
6
7
14
15
15
2
1
0
2.8
2.5
2.1
1 8 14 -1 1.7
End of the first stage and beginning of second stage
End of second stage and beginning of the third stage

8. Three stages of
production

9. Indivisibility of factors.
Change in factor ratio.
Imperfect substitutes.
Conditions of applicability

10. Basis of
difference
Law of variable
proportions
Law of return to
scale
Variable and fixed
factors
Only variable factors are
changed and fixed factors
remain the same.
All the factors are increased
simultaneously.
Stages There are three stages:
Increasing returns
Diminishing returns
Negative returns
There are three stages:
Increasing returns
Constant returns
Decreasing returns
Time period Applies in the short run. Applies in the long run.
Difference between law of variable proportion and
returns to scale

11. In conclusion ,we can say
that Law of variable
proportion applies to the
inputs used in agriculture as
well as industry.
Conclusion

13. Any Query?