Despite the weakness,the law of variable proportion in universal in application.Marshall and his followers believed that the law of increasing returns is applicable in manufacturing industries while the law of diminishing returns is applicable in agriculture.But this is not true.When a factor is increased keeping constant the other factors,the level of technology being held constant the 
product definitely decrease both in agriculture and industry.
This law has proved to be true empirical evidence.As opined by Fritz Machlup - "That people do not grow all the crops they want in just a few little flower pots is sufficient proof for the existence of diminishing returns."According to R.C. Lipsey -"Indeed,were the hypothesis of diminishing returns incorrect,there would need it a food crisis."The improvement in technology can postpone the operation of this law for the time being but cannot completely check the operation of this law.
It is be noted that although this is applicable equally in both agriculture and manufacturing,the operation of the law of diminishing returns can be postponed in manufacturing due to rapid development technology.But,the law operates due to the predominance of nature.
The law of diminishing returns operates in industry in a country like Nepal due to the non-development or slow development of technology.It some of the developing countries cost is decreasing and out put is increasing due to the development of technology.But the operation of this law is inevitable if 'technology remains constant' as assumed by this theory.Hence,the increase in production is necessary to meet the demand of growing population.
The law of variable proportion is of special significance in economic theory.Because some of the laws of economics are based directly on this law.For example,the Ricardian theory of rent and the Malthusian theory of population are based on this law.According to Ricardo since the law of diminishing returns operates in agriculture,even inferior land should be cultivated.On account of this superior by the growing population cannot be met due to the operation of the law of diminishing returns in agriculture.He has thus pointed out the need to check population by various methods.
product definitely decrease both in agriculture and industry.This law has proved to be true empirical evidence.As opined by Fritz Machlup - "That people do not grow all the crops they want in just a few little flower pots is sufficient proof for the existence of diminishing returns."According to R.C. Lipsey -"Indeed,were the hypothesis of diminishing returns incorrect,there would need it a food crisis."The improvement in technology can postpone the operation of this law for the time being but cannot completely check the operation of this law.
It is be noted that although this is applicable equally in both agriculture and manufacturing,the operation of the law of diminishing returns can be postponed in manufacturing due to rapid development technology.But,the law operates due to the predominance of nature.
The law of diminishing returns operates in industry in a country like Nepal due to the non-development or slow development of technology.It some of the developing countries cost is decreasing and out put is increasing due to the development of technology.But the operation of this law is inevitable if 'technology remains constant' as assumed by this theory.Hence,the increase in production is necessary to meet the demand of growing population.
The law of variable proportion is of special significance in economic theory.Because some of the laws of economics are based directly on this law.For example,the Ricardian theory of rent and the Malthusian theory of population are based on this law.According to Ricardo since the law of diminishing returns operates in agriculture,even inferior land should be cultivated.On account of this superior by the growing population cannot be met due to the operation of the law of diminishing returns in agriculture.He has thus pointed out the need to check population by various methods.
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