A rational producer will select his level of production in which stage of the law of variable proportions
A)stage i
B)stage ii
C)stage iii
D)either stage i or stage ii

Question

Quizplus · Accepted Answer

In stage II of the law of variable proportions, marginal product starts to decline, but the total product is still increasing. This stage is considered the most efficient for production because it represents the point where increasing one input still leads to higher output, albeit at a decreasing rate. Rational producers aim to operate in this stage to maximize efficiency and profit.

A Rational Producer Will Select His Level of Production in Which