Answer:
The stages of production are the following:
The primary stage: This is the stage where raw materials are gathered or extracted from the earth, such as mining coal or harvesting timber.
The secondary stage: This is the stage where the raw materials are transformed into finished goods, such as turning steel into cars or making paper from wood pulp.
The tertiary stage: This is the stage where the finished goods are distributed to consumers, such as selling cars to customers or delivering paper products to retailers.
A rational producer should operate in the stage that provides the most profit or the highest return on investment. In general, the primary and secondary stages of production are more capital intensive and require more specialized knowledge and resources, while the tertiary stage is more focused on marketing and distribution. Therefore, the choice of which stage to operate in depends on the availability of resources, the level of competition, and the overall market demand for the product. A rational producer should evaluate the potential profitability of each stage of production and choose the one that provides the highest return on investment and is the most sustainable over the long term.
Step-by-step explanation: