Law of variable proportions definition. Law of variable proportion 2022-12-10

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A mortgage short sale hardship letter is a document that is written by a homeowner who is facing financial hardship and is unable to make their mortgage payments. The letter is typically sent to the lender or mortgage servicer as part of a request to sell the property for less than the amount owed on the mortgage, known as a short sale.

In the letter, the homeowner explains the circumstances that have led to their financial hardship and outlines their inability to continue making mortgage payments. The letter should include details about the homeowner's income, expenses, and any assets or debts. It should also provide an explanation of the efforts the homeowner has made to sell the property or find other solutions to the financial hardship.

There are several reasons why a homeowner might need to request a short sale, including job loss, medical bills, divorce, or other unexpected expenses. Regardless of the specific reason, a hardship letter should be written with honesty and empathy, as the lender or mortgage servicer will be more likely to consider the request if they understand the genuine financial difficulties the homeowner is facing.

Here are a few examples of mortgage short sale hardship letters:

Example 1:

Dear [Lender or Mortgage Servicer],

I am writing to request a short sale of my property at [address] due to financial hardship. I have been struggling to make my mortgage payments for the past several months due to [reason for hardship, such as job loss or medical bills]. Despite my best efforts to sell the property or find other solutions, I have been unable to do so and am unable to continue making mortgage payments.

I am currently [income and expenses, such as "working part-time and earning $X per month, with monthly expenses of $Y"], and I have [assets and debts, such as "savings of $Z and credit card debt of $A"]. I have attached supporting documentation to this letter, including my current income and expense statement and a copy of my credit report.

I understand that a short sale is not the ideal solution for either of us, but I am at a loss for how to resolve this situation. I hope that by providing this information, you will be able to understand my financial hardship and consider my request for a short sale. I am willing to work with you to find a mutually beneficial resolution.

Thank you for your time and consideration.

Sincerely, [Your name]

Example 2:

Dear [Lender or Mortgage Servicer],

I am writing to request a short sale of my property at [address] due to financial hardship. My husband and I have been struggling to make our mortgage payments for the past year due to [reason for hardship, such as divorce or unexpected expenses]. We have tried to sell the property, but due to the current market conditions and the amount we owe on the mortgage, we have been unable to find a buyer.

We have exhausted all other options and are unable to continue making mortgage payments. We understand the impact this may have on your company, and we are willing to do whatever we can to mitigate the damage. We have attached a financial statement outlining our current income and expenses, as well as a list of any assets or debts we have.

We hope that by providing this information, you will be able to understand our financial hardship and consider our request for a short sale. We are willing to work with you to find a mutually beneficial resolution.

Thank you for your time and consideration.

Sincerely, [Your name]

Example 3:

Dear [Lender or Mortgage Servicer],

I am writing to request a short sale of my property at [address] due to financial hardship. I have been

Law of Variable Proportions

law of variable proportions definition

Significance of stage I —The producer does not operate in stage I. The Variable Ratings Act Explained Let's understand this law with the help of another example: In this example, the earth is an integral part of work and work is a dynamic element. The law of variable proportion can be understood in the following way. In simpler terms, opportunity cost helps us to choose cost-efficient options. Stage I: Stage of Increasing return In the above table, we see that when the unit of labor increase from 0 to 1 then the Total product increase from 0 to 20, the Average product increase from 0 to 20, and the Marginal Product increase from 0 to 20. We have also noticed that this input-output relation can be divided into three stages. Hence these assumptions are necessary to consider while applying the law of variable proportion.

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Law of Variable Proportion

law of variable proportions definition

Fixed Factors of production: The principal cause of the operation of this law is that some of the factors of production are fixed during the short period. Therefore, when more and more units of a variable factor are added to the constant quantity of the fixed factor, the fixed factor is more intensively and effectively utilised. In short, increasing returns to a factor begins to manifest itself in the first stage. From A to B points. From the point F onwards during the stage 1, the total product curve goes on rising but its slope is declining which means that from point F onwards the total product increases at a dimin­ishing rate total product curve TP is concave down-ward , i.

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Law of variable proportion

law of variable proportions definition

TP declines after the B point where MP goes on negative. Definición: Law Of Variable Proportions significa Gesetz variabler Proportionen. However, in Stage III, he incurs higher costs and also gets lesser revenue thereby getting reduced profits. Phase One or Phase Growth Row: At this stage, product volume increases with increasing rate. At the end of this stage, the marginal product exceeds its value for the average product. Now, if you keep the land unchanged but raise 2 staff units, the average workforce is 5: 1. ADVERTISEMENTS: Law of Variable Proportions: Assumptions, Explanation , Stages , Causes of Applicability and Applicability of the Law of Variable Proportions! The units produced need to be homogenous.

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Law of Variable Proportion with diagram

law of variable proportions definition

The second reason why we get increasing returns to the variable factor in the initial stage is that as more units of the variable factor are employed the efficiency of the variable factor itself increases. Law of variable proportion is also known as the Law of Proportionality. However, the increase is still positive. In this part of the blog, the law of variable proportion is explained with the following example — Imagine you are at your favorite ice cream parlor and you begin eating scoops of ice cream one after the other. This relationship is also called restitution is a dynamic element. After this diminishing process, both the factors, i.


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Law of Variable Proportion and it's explanation

law of variable proportions definition

Marginal product of labour, it may be recalled, is the increment in total output due to the use of an extra unit of labour. . Increases and reaches its maximum point 2 nd Stage Increases at diminishing rate and reaches its maximum point. Therefore, it is called the stage of negative returns. And AP increases and becomes maximum at the G point where AP and MP intersect with each other. This law reveals the total effect on output with a proportionate variation in one variable input i. Production is the result of the cooperation of all factors.

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The Law of Variable Proportions

law of variable proportions definition

This also helps people to use every available resource efficiently and tactfully. This indicates that each and every unit is of identical quality and quantity and amount to an identical figure. It means production will not take place in stage III and stage I. Land, mines, fisheries, and house building etc. III — TPP declining.

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Law of variable proportions

law of variable proportions definition

Also, when you obtain extra output on applying an extra unit of the input, then this output is either equal to or less than the output that you obtain from the previous unit. These are elucidated in the following table: Three Stages of Production Stages Total Product Marginal Product Average Product 1 st Stage Initially it increases at an increasing rate. In stage 2, the total production continues to increase at a diminishing rate until it reaches its maximum point where the 2nd stage ends. Therefore, it is important to add successive units of the variable input alongside decreasing amounts to the total output as they have less fixed inputs to work with. Therefore, the producer can employ more units of the variable to efficiently utilize the fixed factors.

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Law of Variable Proportions: Meaning, Definition, Assumption and Stages

law of variable proportions definition

In other words, the units are homogeneous in nature. When we increases the labour even after MP becomes zero, then MP becomes negative and it goes below the X axis. As explained above, increasing returns to a variable factor occur initially primarily because of the more effective and fuller use of the fixed factor becomes possible as more units of the variable factor are employed to work with it. In this case, the employer has to bear extra losses, which is the law of the variable proportion as per the state. In other words, as one of the factors in production makes some variation in its quantity, keeping all the other factors constant, the ratio between all the factors starts varying, which further influence the level of output. This stage is known as increasing returns.


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What is Law Of Variable Proportions? Definition, Meaning, Example

law of variable proportions definition

The producers of goods and services can be benefited from the use of this law. This means that the efficiency of the variable factor of production is increasing i. This is the end of the first stage. This first stage ends where the average product curve AP reaches its highest point, that is, point S on AP curve or CW amount of the variable factor used. Here marginal product has started falling. After this diminishing process, both the factors, i.

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Law of Variable Proportions

law of variable proportions definition

In other words, the law indicates the relationship between the units of a variable element and the output value in the short term. Schedule of Marginal Product and Average Product The above table plot the graph to know a clear picture of the relationship between Marginal product and Average Product. This stage is the most relevant stage of operation for a producer according to the law of variable proportions. Eventually, the fixed factor becomes more and more scarce in relation to the variable factor so that as the units of the variable factor are increased they receive less and less aid from the fixed factor. But there is generally a limit to the range of employment of the variable factor over which its marginal and average products will increase. The average product is maximum at a specific range of its position and then decreases. This is assuming that all other factors are constant.

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