Knowee
Questions
Features
Study Tools

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
🧐 Not the exact question you are looking for?Go ask a question

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:

  1. Always - This implies that Stage II begins consistently with the decline of APL, which aligns with economic theory.
  2. Never - This suggests that APL never declines at the onset of Stage II, which contradicts basic production theory.
  3. Sometimes - This is not accurate, as the transition is clearly defined in economic terms.
  4. 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.

This problem has been solved

Similar Questions

Which of the following is NOT a stage of Product Life Cycle?  A. Introduction Stage  B. Decline stage  C. Growth stage  D. Retiring stage

When the Marginal Product of Labor is negative, we are in stage I for land stage III for labor stage II for land none of the above

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

When the Average Product of Labor is positive but declining, the Marginal Product of Labor could be? A. Declining B. zero C. negative D. any of the above

Price competition starts to occur in ___________ phase of the product life cycleSelect one:a.Introductionb.Growthc.Saturationd.Decline

1/1

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.