Stage II of production begins where the Average Product of Labor begins to decline Always Never Sometimes Often
Question
Stage II of production begins where the Average Product of Labor begins to decline
- Always
- Never
- Sometimes
- Often
Solution
In economics, the Average Product of Labor (APL) is defined as the output produced per unit of labor. Stage II of production is characterized by increasing marginal returns up to a point, after which the APL starts to decrease. The transition into Stage II occurs when the APL reaches its maximum and begins to decline.
Now, looking at the answer choices:
- Always - This implies that Stage II begins consistently with the decline of APL, which aligns with economic theory.
- Never - This suggests that APL never declines at the onset of Stage II, which contradicts basic production theory.
- Sometimes - This is not accurate, as the transition is clearly defined in economic terms.
- Often - While it may seem plausible, "often" introduces ambiguity that doesn't fit the theoretical framework.
Conclusion
The correct answer is Always, as Stage II of production begins precisely when the Average Product of Labor begins to decline. This conclusion stems from the established theory in the economics of production.
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