Question

Define the short run law of
production Explain the three
stages of this law.​

Answer 1

Answer:

Stage I – The TPP increases at an increasing rate and the MPP increases too. The MPP increases with an increase in the units of the variable factor. ...

Stage II – The TPP continues to increase but at a diminishing rate. ...

Stage III – Now, the TPP starts declining, MPP decreases and becomes negative.

Explanation:

Answer 2

Answer:

Short Run Law of production:

In the short run, the law of diminishing returns states that as more units of a variable input are added to fixed amounts of land and capital, the change in total output will first rise and then fall. Diminishing returns to labour occurs when marginal product of labour starts to fall.

Three  stages of this law:

The three stages of short-run production are readily seen with the three product curves--total product, average product, and marginal product. A set of product curves is presented in the exhibit to the right. The variable input in this example is labor. The top panel contains the total product curve (TP).