The Law of variable proportions Explained. The law of variable proportion is one of the fundamental laws of economics. It is the generalized form of Law of Diminishing marginal return. The law of variable proportion…
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What is the between Total fixed cost and total variable cost? In the short run factors of production are in the nature of fixed and variable. The total cost of production includes total fixed and total variable factors.
This law examines the production function assuming one factor as variable and other as fixed. In reality, this law is the improved form of the law of decreasing returns because that law also explains as to how returns would be affected assuming one factor as variable and others as fixed.
This law is related to short-run production function. This law examines production function keeping one factor as fixed and other factors as variable.
Typewriter is the first type of machine used in office and this was introduced in 1873. The use of typewriters is increasing because the work performed by a typewriter is accurate, neat and fast. It produces work of better appearance and increases the speed of work.
The following are the limitations of the method of variable cash reserve ratio, such as this method is not effective when the commercial banks keep very large excessive cash reserves. In such a case ever if cash reserve 'ratio is raised, ample reserves remain after satisfying the minimum requirements.