Explain law of variable proportion with the help of TPP and MPP curves.
Statement of law of variable proportion. The law states, 'if more and more units of a variable factor are employed with fixed factors, total physical product (TPP) increases at an increasing rate in the beginning, then increases at a diminishing rate and finally starts falling.' Since increase in TPP by employment of an additional unit of a variable factor is called marginal physical product (MPP), this law can be defined in terms of MPP also. If quantities of a certain variable factor are increased while quantities of other factors are fixed, MPP first increases, then falls but remains positive and finally becomes negative. This pattern of MPP is called law of variable proportion. It is a short period concept.
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