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    Question

    The stage of production where the marginal physical

    product (MPP) is greater than the average physical product (APP) is known as:
    A Stage one Correct Answer Incorrect Answer
    B Stage two Correct Answer Incorrect Answer
    C Stage three Correct Answer Incorrect Answer
    D Stage four Correct Answer Incorrect Answer
    E Rational stage Correct Answer Incorrect Answer

    Solution

    In stage one, input productivity rises, making it economically inefficient to stop production, but not optimal for profit maximization yet.

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