User:Jayasreev/Temp/LAW .doc

→ This law is based on short production function.

→The gist of law is that if quantity of variable factors is increased keeping constant, other factors, eventually AP and MP will decline.

→ This law is applicable in all industries, but more In agriculture.

→ Rationale producer prefers second stage where TP reaches maximum, MP become zero, not negative. and AP decreases.

→ Third stage is unfeasible because MP is negative, so no meaning in paying additional wages to labours.