The law of variable proportions was developed by ________.

🔑Key Points:
 The Law of Variable Proportions, also known as the Law of Diminishing Returns or Diminishing Marginal Returns, is primarily attributed to British economist Alfred Marshall. He extensively developed this concept in his book "Principles of Economics", helping to make it a fundamental principle in the field of microeconomics.
The Law of Variable Proportions states that if a firm keeps increasing an input (like labor or capital), while holding all other inputs constant, the additional output, also known as marginal product, gained from each additional unit of the input will eventually start to decrease. In other words, beyond a certain point, each additional unit of input will yield less output than the previous unit.
This law is vital when considering production decisions and cost management, and it impacts many factors such as pricing, competitive strategy, and business growth.

🔴 Additional Information::Here are additional points about the Law of Variable Proportions developed by Alfred Marshal:
Phases of the Law: The law operates in three stages. In the first stage, each additional unit of input results in proportionally greater levels of output (increasing marginal returns). In the second stage, each additional unit of input still produces more output, but at a decreasing rate (decreasing marginal returns). In the third stage, additional units of input actually lead to a decrease in total output (negative marginal returns).
Assumptions: The law assumes that technology is constant and that the quantity of one input can change while all others remain constant.
Application: The law is a vital tool in understanding the concept of optimal factor combinations during the production process. It allows producers to understand at what point the additional use of one input, with others held constant, begins to result in declining productivity.
Firms' Perspective: From the perspective of firms, comprehending the law of variable proportions is critical because it provides insights into how to achieve maximum efficiency in the production process.
Time Span: The law of variable proportions is a short-run concept because it assumes at least one factor of production is fixed.
Real World Example: Businesses frequently exemplify this law when hiring new employees. Initial hiring usually increases productivity considerably. However, once the company is fully staffed, new hires may yield less value and could even hamper productivity if the workspace becomes too crowded or if resources are stretched too thin.
The law helps to explain the "U"-shape of a typical firm’s short-run cost curves. As marginal returns diminish, the marginal cost of producing an additional output unit increases, resulting in the upward slope of the marginal cost curve.