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Relationship between TP, MP and AP Curves

Stage III is ...

Question

Stage III is also called the stage of .

A

constant returns

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B

increasing returns

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C

diminishing returns

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D

negative returns

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Solution

The correct option is D negative returns
Stage III is the stage of negative returns. In this stage, TP is falling as MP is negative.

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Relationship between TP, MP and AP Curves

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