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Which of the following statement is true:
In the first stage, Total Product increases at an increasing rate and Marginal Product rises till it reaches its maximum point.
In the second stage, Total Product decreases at a decreasing rate and reaches maximum, and MP becomes zero.
In the third stage, Total Product increases and Marginal Product (MP) becomes negative.
There is a fourth stage of production.
Option (1) is correct.
Explanation: In the first stage, when total product increases at an increasing rate, then marginal product also rises till the point where it reaches maximum point.
By: Parvesh Mehta ProfileResourcesReport error
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