हिंदी

Why is Stage II considered the rational stage for a producer to operate?

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प्रश्न

Why is Stage II considered the rational stage for a producer to operate?

विकल्प

  • Average product is at its maximum

  • The fixed factor is fully under-utilized

  • Marginal product and average product are positive but falling

  • Marginal product is negative

MCQ
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उत्तर

Marginal product and average product are positive but falling

Explanation: 

In Stage II, output increases at a decreasing rate, and the producer makes rational decisions about input use.

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