In the three stages of production, which is the rational zone of production?

• In economics, the production process is often divided into three stages, based on the relationship between the input of variable factors (like labor) and the resulting output of goods and services. Stage II is considered the rational zone of production due to the following reasons:
-Increasing Returns to Scale: In stage II, increasing the input of variable factors leads to a proportionally greater increase in output. This is because the fixed factors of production (like land and capital) are being used more efficiently.
-Optimal Resource Allocation: In stage II, resources are being allocated in the most efficient manner, maximizing output per unit of input. This is where firms typically operate, as it allows them to maximize profits.
-Profit Maximization: The point of maximum profit for a firm usually occurs within stage II, where the marginal product of the variable factor is positive but declining.