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In which stage is the rational decision possible? - Economics

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Question

In which stage is the rational decision possible?

Very Short Answer
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Solution

Since neither stage I nor stage III will see production, the second stage makes the most sense. Therefore, when there is maximum efficiency, the decision favours II. Since TP is a constant, it is rising.

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Chapter 10: Concept of Production and Law of Returns - TEST QUESTIONS [Page 10.24]

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R. K. Lekhi and P. K. Dhar Economics [English] Class 12 ISC
Chapter 10 Concept of Production and Law of Returns
TEST QUESTIONS | Q A. 6. | Page 10.24
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