ECONOMICS
SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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increasing marginal return
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Diminishing marginal return
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Negative marginal return
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Equaling marginal return
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Detailed explanation-1: -Stage 2: Diminishing returns As more units of the variable factor are added, the overall production will continue to increase. However, during this stage, the total product increases at a continuously decreasing rate.
Detailed explanation-2: -The three stages of the law of diminishing marginal returns are the increasing of returns, constant returns, and diminishing returns.
Detailed explanation-3: -The stage 2 of the production starts from the point where the average product of the factors is equal to the marginal product of the variable factor and ends when the marginal product of the variable factor becomes zero. The total product during the entire second phase of production exhibits diminishing returns.
Detailed explanation-4: -The three stages of returns are: Increasing returns. Diminishing returns. Negative returns.