Question

Identify the correct pair of from the following Columns I and II:

Columns I	Columns II
1. Total Product increases at an increasing rate and Marginal Product rises till it reaches its maximum point.	(a) Second Stage
2. Total product increases at a decreasing rate and reaches maximum, and MP becomes zero.	(b) First Stage
3. Total product also decreases and marginal product (MP) becomes negative.	(c) Third Stage
4. Improvement in technique of production and discovery of fixed factor substitute can postpone the operation of law for some time.	(d) Fourth Stage

Options

• 1 - (a)

• 2 - (b)

• 3 - (c)

• 4 - (d)

Answer 1

3 - (c)

Explanation:

Total product begins to decline at the third stage of manufacturing, and marginal product goes below the x-axis, becoming negative.