Economic Definition of stages of production. Defined.
Offline Version: PDF
Term stages of production Definition: The three stages of production characterized by the slope and shape of the total product curve. The first stage is characterized by an increasingly positive slope. The second stage by a decreasingly positive slope. And the third stage by a negative slope. Because the slope of the total product curve IS marginal product, these three stages are also seen with marginal product. In Stage I, marginal product is positive and increasing. In Stage II, marginal product is positive, but decreasing. And in Stage III, marginal product is negative.
« stable equilibrium | stagflation »
Permalink: https://glossary.econguru.com/economic-term/stages+of+production