ECONOMICS
SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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in stage 1 of the production.
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in stage 2 of the production.
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in stage 3 of the production.
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as much as it possibly can.
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Detailed explanation-1: -During the third stage of production, diminishing marginal returns set in and the marginal returns to a factor diminish. Thus the MP curve falls steeply during this period.
Detailed explanation-2: -And so on. The height of each bar measures the marginal product of labor. For example, when labor increases from 2 to 3, total product increases from 10 to 13, so the marginal product of the third worker is 3 units of output.
Detailed explanation-3: -Economists recognize three distinct stages of production, which are defined by a concept known as the law of diminishing marginal returns. This law holds that as you add more workers to the production process, output will increase, but the size of that increase will get smaller with each worker you add.
Detailed explanation-4: -Stage II is the stage of diminishing returns. Stage II of production begins at the point where the average and marginal products are equal. Q. “Whenever marginal product is equal to average product, total product is at its maximum."