Question

Stage II of production begins at the point

• A. of inflection of the total product curve
• B. where the average and marginal products are equal
• C. where total product is at a maximum
• D. where marginal product is at a maximum

Answer 1

The correct option is B

where the average and marginal products are equal

Stage II is the stage of diminishing returns. Stage II of production begins at the point where the average and marginal products are equal.