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Lvp law of variable proportions www.eakanchha.com

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Akanchha Agrawal
Akanchha Agrawal

law of variable proportions with graph. TP & MP relationship with graph. micro economics class 11th chapter 5th. for more login to www.eakanchha.com

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TP MP 10 10
Once there was a farmer. He was working alone on a very big farm thats why his TP was very low: say for ex: TP=10 units and MP=10 units TP = 10 MP = 10
TP MP 10 10 30 20
After sometime his friend join on the farm thats why his TP increases suddenly at a very high rate say for ex: TP=30 units i.e. the MP=20 units. A VERY BIG CHANGE. TP = 30 MP = 20
TP MP 10 10 30 20 45 15
Again, After sometime his 3rd friend join him on the farm but this time his TP increases to only say for ex: TP=45 units i.e. the MP=15 units (Which is less than before.) TP = 45 MP = 15
TP MP 10 10 30 20 45 15 52 7
Again, After sometime his 4th friend join him on the farm and this time his TP increases to only say for ex: TP=52 units i.e. the MP=7 units (Which is again less than before.) TP = 52 MP = 7
TP MP 10 10 30 20 45 15 52 7 52 0
Again, when his 5th friend join him on the farm, this time his TP does not change i.e. TP=52 units and MP=0 units (This indicates TP is at maximum.) TP = 52 MP = 0
TP MP 10 10 30 20 45 15 52 7 52 0 48 - 4
Now, when his 6th friend join him on the farm. Now there was no need left for an extra farmer on the same piece of land thats why this 6th farmer leads to decrease in TP say for ex: TP=48 units i.e. the MP=-4 units TP = 52 MP = 7
Lvp law of variable proportions www.eakanchha.com

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Lvp law of variable proportions www.eakanchha.com

  • 2. Once there was a farmer. He was working alone on a very big farm thats why his TP was very low: say for ex: TP=10 units and MP=10 units TP = 10 MP = 10
  • 4. After sometime his friend join on the farm thats why his TP increases suddenly at a very high rate say for ex: TP=30 units i.e. the MP=20 units. A VERY BIG CHANGE. TP = 30 MP = 20
  • 5. TP MP 10 10 30 20 45 15
  • 6. Again, After sometime his 3rd friend join him on the farm but this time his TP increases to only say for ex: TP=45 units i.e. the MP=15 units (Which is less than before.) TP = 45 MP = 15
  • 7. TP MP 10 10 30 20 45 15 52 7
  • 8. Again, After sometime his 4th friend join him on the farm and this time his TP increases to only say for ex: TP=52 units i.e. the MP=7 units (Which is again less than before.) TP = 52 MP = 7
  • 9. TP MP 10 10 30 20 45 15 52 7 52 0
  • 10. Again, when his 5th friend join him on the farm, this time his TP does not change i.e. TP=52 units and MP=0 units (This indicates TP is at maximum.) TP = 52 MP = 0
  • 11. TP MP 10 10 30 20 45 15 52 7 52 0 48 - 4
  • 12. Now, when his 6th friend join him on the farm. Now there was no need left for an extra farmer on the same piece of land thats why this 6th farmer leads to decrease in TP say for ex: TP=48 units i.e. the MP=-4 units TP = 52 MP = 7