Below three stages of production (Stage I, II, III) are given in the graph,(15)

(a). What each stage is showing? Why 3 stages? Why not more than 3?

(b). How would you relate upper and below graph?

(c). Which stage of production is more profitable for a firm?

H TP TP F Stage I tag II Stage III O X MP Labour AP Increasing Diminishing Negative Returns Returns Returns M AP MP X Labour