Stage III of the short-run Production Function is
A)the most efficient mix of inputs.
B)the least costly level of output.
C)where additional units of variable inputs will lead to less output.
D)where additional units of variable inputs will lead to more output.

Question

Quizplus · Accepted Answer

In Stage III of the short-run production function, the law of diminishing returns comes into play, which means that the addition of more units of variable inputs will lead to less output. Therefore, the correct choice is C.

Stage III of the Short-Run Production Function Is