Question: When there is increase in the production, we normally increase the labour rather than the machinery. The more labour employed in the production process, there

When there is increase in the production, we normally increase the labour rather than the machinery. The more labour employed in the production process, there will be raise in the production But continuous increase in the labour may lead to decrease in the production after certain point. Here comes the question. How many employees should be employed to get maximum production? Law of variable proportion answers the question of the employment of labour for optimum production? Explain the Law of Variable Proportions in detail?
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The law of diminishing returns also known as the law variable proportion states that if increasing q... View full answer

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