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Which of the following is not correct regarding Stage I of Law of variable proportions with Labour (L)…

In Stage I, average product of labour rises: \(dAP_L/dL=(MP_L-AP_L)/L>0\). Marginal product therefore exceeds average product until the boundary, making the claim MP_L <…

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Which of the following is not correct regarding Stage I of Law of variable proportions with Labour (L) as variable factor and Land (N) and Capital (K) as fixed factors ?

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Correct answer C

In Stage I, average product of labour rises: dAPL/dL=(MPL−APL)/L>0dAP_L/dL=(MP_L-AP_L)/L>0. Marginal product therefore exceeds average product until the boundary, making the claim MP_L < AP_L incorrect.

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