Please provide a detailed discussion of the following two fi

Please provide a detailed discussion of the following two figures from the textbook:

Solution

This is known as law of variable proortion where intially TP will increase at imcreasing rate. In this case MP will ne increasing This is known as stage one and this is upto 3unit of labor.

Second stage Tp will increase but at decreasing rate and MP will decrease but still remains positive.

Third stage TP will decrease and MP will be negative.

MP will cut AP at AP maximum

Thus when MP>AP then AP increases

When MP<AP then AP decreases

Most of the things in real life is in second stage where diminishing return prevails. Eg in Agriculture sector