Total product starts declining in which stage of production?

CA Foundation · Business Economics · PYQS · May 2025
Total product starts declining in which stage of production?
(A) A. Stage 1: The stage of increasing returns
(B) B. Stage 2: The stage of diminishing returns
(C) C. Stage3: The stage of negative returns
(D) D. It may decline in any stage of production

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. Stage3: The stage of negative returns

Topics: Theory of Production and Cost

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