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In production theory, Stage II of the short-run law of variable proportions ends where:

AMarginal product (MP) becomes maximum
BAverage product (AP) becomes zero
CMarginal product (MP) becomes zero and total product (TP) reaches maximum
DTotal product (TP) begins to decline rapidly

Explanation

Stage II ends at the point of technical efficiency where Marginal Product drops to zero and Total Product achieves its absolute peak.

Submitted by: mcqstutor Team More Economics MCQs →

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