Question

The second stage of the law of variable proportion is ________________.

• A. increasing returns stage
• B. diminishing returns stage
• C. negative returns stage
• D. none of these

Answer 1

The correct option is B diminishing returns stage

The second stage of the law of variable proportion is diminishing returns stage.

The total product continues to increase at diminishing rate and becomes maximum. Marginal product continues to diminish and becomes equal to zero. The average product becomes equal to marginal product and then diminishes to zero.