Given the production function Q = 21X + 9X2 - X3, where Q = Output, and X = Input
a. At what value of X does Stage II of the production function begin?
b. At what value of X does Stage III of the production function begin?
c. At what value of X does diminishing returns set in?
a. Stage II begins when AP is at a maximum, or X = 4.5
b. Stage III begins where MP = 0, or X = 7 [-1 has no meaning]
c. diminishing returns set in when MP at a maximum, or dMP/dQ = 0, or X = 3
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What will be an ideal response?
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