In which stage of production is the marginal product always greater than the average product?

✅Explanation:
In the first stage of production, the marginal product (MP) is always greater than the average product (AP). This is because, initially, adding more units of a variable input (like labor) leads to increasing returns, meaning each additional unit of input contributes more to the total output than the previous unit. This increased efficiency in production causes the MP to be higher than the AP.

• Relationship between MP and AP:
-MP > AP: Average product is increasing.
-MP = AP: Average product is at its maximum.
-MP < AP: Average product is decreasing.

📌Other Options:
-(b) II stage: In the second stage, MP intersects AP at its maximum point.
-(c) III stage: In the third stage, MP becomes negative, indicating that adding more units of input actually reduces the total output.
Key Points
-The onset of stage 3 results due to the negative marginal curve product.
– The increase in output per unit increase in input is called as Marginal Product.
-The marginal product curve first increases, reaches its maximum and then declines.
-The law of diminishing marginal returns drives the marginal product to a point in short-run production when it turns out to be negative.
-Stage 3 is not at all feasible for the operation of any firm as the total product starts to decline and the marginal product becomes negative.