Discussion
In the third stage of production, the total product is :
Answer: D
In the third stage, total product is falling but positive.
Under the law of variable proportions, stage I has rising average product, stage II has falling but positive marginal product, and stage II ends where total product reaches its maximum and marginal product is zero. In stage III marginal product is negative, so each extra unit of the variable input reduces total product, though total product itself is still a positive amount.
Total product is rising in stages I and II, is at its maximum only at the boundary between II and III, and is never constant across a stage. A rational producer avoids stage III.
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