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Third stage of Law of Variable Proportion is called
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- negative returns
- positive returns
- constant returns
- increasing returns
- negative returns
Correct Option: A
The stages of Law of Variable Proportion are: Stage 1: Increasing return; Stage 2: Diminishing return; and Stage 3: Negative Return. In the third stage Marginal Product of variable factor is zero. In this stage the Total Product starts diminishing.
