Question

A rational producer will produce in a stage in which marginal product is

Answer 1

Answer:

Explanation:

A producer, thus, can always increase his output by reducing the units of the variable factor. Thus, a producer would wish to produce in stage 2 where both, the marginal product and average product of the variable factors are diminishing. Stage 2 represents the range of rational production decisions.

Answer 2

A producer, thus, can always increase his output by reducing the units of the variable factor. Thus, a producer would wish to produce in stage 2 where both, the marginal product and average product of the variable factors are diminishing. Stage 2 represents the range of rational production decisions.