In the short run the producer will avoid producing in the region where marginal product of labour is positive
Answers
Answered by
1
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.
Similar questions
Science,
7 months ago
Math,
7 months ago
Social Sciences,
7 months ago
English,
1 year ago
Biology,
1 year ago