In class we discussed Stage 2 of production, which is the most efficient (lowest cost) stage to produce in. Which of the following is correct?
a. Stage 2 ends where Average Product turns negative (or is zero, same thing)
b. Stage 2 ends where Average Product is maximized
c. Stage 2 ends where Marginal Product turns negative (or is zero, same thing)
d. Stage 2 ends where Marginal Product is maximized