Stage II of production begins at a level of output where the average product of the variable input is at a maximum and ends where the marginal product of the variable input is equal to zero.

Question

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In Stage II of production, the average product of the variable input is at its maximum at the beginning of this stage, indicating the most efficient use of inputs. The stage ends when the marginal product of the variable input becomes zero, indicating that adding more of the variable input does not increase total output, marking the transition to Stage III where total output starts to decrease.

Stage II of Production Begins at a Level of Output