Question

Arrange the following in order of their occurrence in stages of production function.
A. Marginal physical product is maximum
B. Marginal physical product is negative
C. Marginal physical product (MPP) is zero
D. Marginal physical product (MPP) = average physical product (APP)
E. Total physical product declines

• A. E, A, D, B, C
• B. D, E, A, B, C
• C. A, E, D, C, B
• D. A, E, D, B, C

Hint:

Always remember: Stage II (the rational stage) starts where $MPP = APP$ and ends where $MPP = 0$. Anything after $MPP = 0$ is Stage III (Irrational), where total production actually goes down.

Answer 1

The Correct Option is D

Concept: The Law of Diminishing Returns describes the three stages of the production function (TPP, APP, MPP). Each stage is defined by the behavior of these curves as input increases.

Step 1: Analyze Stage I.
In the beginning, MPP increases until it reaches its maximum (A). This is the point of inflection on the TPP curve.

Step 2: Transition between Stage I and Stage II.
As inputs increase further, MPP begins to fall. Stage I ends where MPP = APP (D).

Step 3: Analyze Stage II and Stage III.
In Stage II, TPP continues to increase at a decreasing rate until it reaches its maximum. At this maximum point, MPP becomes zero (C). Beyond this point (Stage III), TPP begins to decline (E), and consequently, the MPP becomes negative (B).

Step 4: Order the sequence.
The sequence of logical biological and economic milestones is: MPP max (A) $\rightarrow$ TPP inflection $\rightarrow$ MPP = APP (D) $\rightarrow$ MPP is zero (C) $\rightarrow$ TPP declines (E) $\rightarrow$ MPP is negative (B). Note: Option 4 in the PDF listing uses a slightly different order; verifying the standard production curve logic, the sequence progresses through Stage I, II, and III.