Stage I:

Question

Stage I:

Quizplus · Accepted Answer

In Stage I of production, the marginal product of labor increases as more inputs (e.g. workers) are added, until a point is reached where the marginal product begins to decrease. This means that using too little input (Choice A) will result in a lower output than what could be achieved with more input. Using too much input (Choice D) will eventually lead to diminishing returns, but in Stage I, it is still possible to increase output by adding more input. Therefore, using resources efficiently (Choice B) and producing too much output (Choice C) are not applicable to Stage I.