In the third of the three stages of production __________.

the marginal product curve has a positive slope

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the marginal product curve lies completely below the average product cuve

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total product increases

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average product increases

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Solution

The correct option is B the marginal product curve lies completely below the average product cuve
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.

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In the third of the three stages of production __________.

The correct option is B the marginal product curve lies completely below the average product cuveDuring 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.

The correct option is B the marginal product curve lies completely below the average product cuve
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.