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Question
Which of the following statement is true?
Options
Marginal Product refers to total output produced by a firm during a given period of time with given number of inputs.
Average Product refers to total output produced by a firm during a given period of time with given number of inputs.
Total Product refers to total output produced by a firm during a given period of time with given number of inputs.
Total Product refers to total input produced by a firm during a given period of time with given number of output.
Solution
Total Product refers to total output produced by a firm during a given period of time with given number of inputs.
Explanation:
Total output from a given number of inputs can be defined as total product. The total product is calculated by multiplying the average product by the number of units of the variable factor.
