Question 3 of 31beginner🧠 RememberVery Short1 mark
What is the total product of an input?
Correct Answer
Total product is the relationship between a variable input and output when all other inputs are held constant. It shows the different levels of output that can be obtained from different levels of employment of a variable input.
Exercise: EXERCISES | Q: 2 | (Page 15)
For More Understanding
Explanation
The textbook defines Total Product (TP) as the relationship between the variable input and output, keeping all other inputs constant. It is also referred to as total return to or total physical product of the variable input. For any level of employment of an input, the total product can also be calculated as the sum of marginal products of every unit of that input up to that level.