The correct answer is: 3, 1, 2.
Increasing returns are the first stage of production, where the output increases more than proportionately to the increase in inputs. Diminishing returns are the second stage of production, where the output increases less than proportionately to the increase in inputs. Negative returns are the third stage of production, where the output decreases as the inputs increase.
Increasing returns occur when there are economies of scale. This means that the cost of producing each additional unit of output decreases as the total output increases. This can happen for a number of reasons, such as when there are fixed costs that do not change as the output level changes. For example, a company may have to spend a certain amount of money on research and development, regardless of how many units of its product it produces. Once the research and development is done, the company can produce additional units of its product at a lower cost.
Diminishing returns occur when there are diseconomies of
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