Question

Why is stage 2 regarded as the rational stage of production 2?

Answer 1

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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

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✍✍ANSWER✍✍

✨✨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.✨✨

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