Which stage of the Law of Variable Proportions is inefficient for production?First stageSecond stageThird stageFourth stage

The stage of the Law of Variable Proportions that is considered inefficient for production is the first stage.

Explanation:

1. Understanding the Law of Variable Proportions: This law states that as you increase one factor of production while keeping other factors constant, the output will initially increase, but after a certain point, the addition of that factor will yield lower returns.

2. First Stage Characteristics:

   • In the first stage, the output increases at an increasing rate as more of the variable input is added.
   • However, it is characterized by inefficiencies because productive resources are not being used to their limit.
   • The additional output gained from adding more of the variable input is growing faster than the increase in inputs.

3. Subsequent Stages:

   • In the second stage, output continues to increase but at a decreasing rate, which is more efficient.
   • The third stage eventually leads to diminishing returns where any additional input results in less output, but in a more optimal way than the first stage.

Thus, the first stage is inefficient because resources are not fully optimized, while production can still be improved in the second stage.