Unformatted text preview: three stages of production and explain why the firm’s short run production has only one ‘rational’ stage of production. The three stages are identifiable within the curve above. In the first stage, we see a rapid increase in growth, however that growth does slow down and at that point we are at stage 2. The slow down of growth continues until hit reaches the plateau. Once it reaches that plateau, we are at stage 3 and see a decline in productivity....
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- Spring '09
- Economics, Harshad number, Short-run marginal product, Short-run average product, AP) curve;