Q:
What Are the Three Stages of Production in Economics?
A:
Quick Answer
In economics, the three stages of production are increasing average product production, decreasing marginal returns and negative marginal returns. These stages of production apply to short-term production of goods, with the length of time spent within each stage varying depending on the type of company and product.
Continue ReadingFull Answer
During the first stage of production, the total product curve always has a positive slope, with marginal product always being initially greater than average product. However, the two product lines meet and become one as the first stage ends. Stage two of the production curve typically features decreasing positive marginal returns, before becoming negative as it enters stage three.
Learn more about EconomicsRelated Questions
-
Q:
What Are the Four Factors of Production?
A: In economics, land, labor, capital and entrepreneurship are known as the four factors of production. They are given this label because each plays a role in... Full Answer >Filed Under: -
Q:
What Were Adam Smith's Contributions to Economics?
A: Adam Smith's main contributions to the field of economics were to lay the conceptual foundations for measuring a nation's wealth not by its gold or silver ... Full Answer >Filed Under: -
Q:
What Is a Labor Resource?
A: In basic economics, labor resources, or simply labor, is one of the three major factors of production, the other two being land and input. In the broadest ... Full Answer >Filed Under: -
Q:
What Happens When Supply Exceeds Demands?
A: The law of supply and demand in economics indicates that a "surplus" exists when supply of a given product exceeds demand. If the supply of gum exceeds dem... Full Answer >Filed Under:
