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In production function why the producer …

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In production function why the producer want to be in 2 phase

Posted by Devanshi Agarwal 6 years, 9 months ago

CBSE > Class 11 > Economics

1 answers

Pulkit Singh 6 years, 9 months ago

A producer alway wants to produce in the second phase because in that phase his profit is maximised. Total Product (TP) is maximum and marginal product (MP) is 0. Its the most profitabe. In stage 1 he can still go on increasing production and in stage 3 he will face lose.

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