Law of variable proportions definition. Law of variable proportion 2022-10-18

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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 Proportion Meaning, Assumptions, Three Stages, Casues of Applicability

law of variable proportions definition

Application to Agriculture: With a view of raising agricultural production, labour and capital can be increased to any extent but not the land, being fixed factor. The law of variable proportion can be understood in the following way. After 3 to 4 scoops, your satisfaction will be at the highest peak and then start diminishing at a steady rate. This eventually makes the marginal product MP starting to fall. What is the assumption regarding technology in the case of the law of variable proportions? The law of variable proportion applies to all fields of production namely agriculture, industry, etc. The marginal product has the quick range to attain the zero value at a particular point. Their attributes, prices, and other features are all the same.

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Law of Variable Proportions

law of variable proportions definition

This causes the marginal product of that variable factor to declining. At a certain period during this stage, TPP will reach its maximum value while MPP is about to hit 0. Hence these stages are an integral part of the law of variable proportion. Image will be uploaded soon From this example, it can be determined that with an increase in new labours, there was a certain increase in both output and productivity. In the presence of perfect divisibility, the optimum proportion between the factors could have always been achieved.

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Law of Variable Proportion with diagram

law of variable proportions definition

To make a simple presentation, we draw the curve of Total Physical Product TPP and Marginal Physical Product MPP curves as smooth curves against flexible inputs workers. The law does not apply to those cases where the factors must be used in fixed proportions to yield a product. The occurrence of this phenomenon suggests that this company cannot make use of the maximum labourers or machinery it can afford in order to improve efficiency. Questions on Law of Variable Proportions Q1. TP is total product curve.

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

law of variable proportions definition

This law does not always imply that addition of production variables will decrease overall productivity in the long run, but it is usually the case. Homogeneous factor units: This assumes that all units produced are the same in quality, quantity and price. From A to B points. Eventually, you will reach a point when you are extremely satisfied and the likelihood of you eating another scoop is less. Introduction The law of variable proportion was first introduced by the economists like Joan Robinson, Alfred Marshall, Benham, etc. It impacts the marginal factor and product factor in any activity.

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Law of Variable Proportions: Definition, Explanation, Solved Questions

law of variable proportions definition

Indeed, when the number of factors increases, there is a noticeable alteration in the proportion of the factors. The outcome is a fall in the output instead of an increase. Even after employing 6 units of labour, it fails to yield the marginal product, that is when the MP comes to zero. Optimum Production: After making the optimum use of a fixed factor if it is combined with increasing units of variable factor, then the marginal return of such variable factor begins to diminish. Significance of stage III —In stage III, there is a complete decline in the total product and the marginal product becomes negative. This law does not apply in case all factors are proportionately varied. The average product is maximum at a specific range of its position and then decreases.

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Law of Variable Proportions

law of variable proportions definition

You can also define the concept of cost as the financial valuation of multiple resources, risks, time, materials, and utilities that a person consumes to purchase various services and goods. Here is all the information you need! Thus, during stage 1, whereas marginal product curve of a variable factor rises in a part and then falls, the average product curve rises throughout. This particular stage is referred to as the stage of diminishing returns. Economics Class 11 Now arises a Million Dollar Question. When large and increasing amounts of variable factors are added to indivisible fixed factors, production increases until the optimum level of combination between variable and fixed factors is reached.

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Law of Variable Proportions (With Diagrams)

law of variable proportions definition

When TP reaches the maximum, MP is zero. IT not only paves the path for controlled production but also shows the producers why their productions may have halted. In other words, it refers to the input-output relation when output is increased by varying the quantity of one input. These stages state the condition of the marginal product and average product of the factor which undergo variation. On account of change in the proportion of factors there will also be a change in total output at different rates. Production is not only important for survival but prosperity is also brought to economies by it.

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Law of variable proportion

law of variable proportions definition

Third Phase or Negative Return Phase: In this phase, the product volume decreases and the side product becomes negative. Increases and reaches its maximum point 2 nd Stage Increases at diminishing rate and reaches its maximum point. Second Phase or Decreased Return Phase: In this phase, the product volume increases with a decrease in value until it reaches a high point. Learning everything there is to know about the variable proportion can provide you with the relevant skills needed for a career in the field of economics. The stage II is characterized by decreasing AP and a decreasing MP, but with MP not negative. Since under this law we study the effects on output of variation in factor proportions, this is also known as the law of variable proportions.

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