Which of the following indicates when Stage II ends and Stage III begins in the short-run production function?
A)when AP = 0
B)when MP = 0
C)when MP = AP
D)when MP starts to diminish

Question

Quizplus · Accepted Answer

Stage II ends and Stage III begins in the short-run production function when the marginal product (MP) equals zero. This point indicates that adding more of the variable input (e.g., labor) to fixed inputs (e.g., machinery) results in no additional output, marking the transition from Stage II, where inputs are used efficiently, to Stage III, where inputs lead to decreased total output.

Which of the Following Indicates When Stage II Ends and Stage