The actual stage of production under the law of variable proportion is
a) Stage of increasing returns
b) Stage of diminishing returns
c) Stage of negative returns
d) Stage of either increasing or diminishing returns
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Answer:
D because the explanation I will give
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The Law of Variable proportions has three stages, which are discussed below. First Stage or Stage of Increasing returns: In this stage, the total product increases at an increasing rate. Third Stage or Stage of Negative Returns: In this stage, the total product declines and the marginal product becomes negative.
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