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The marginal product of a variable input is best described as:
- a)total product divided by the number of units of variable input.
- b)the additional output resulting from a one unit increase in the variable input.
- c)the additional output resulting from a one unit increase in both the variable and fixed inputs.
- d)the ratio of the amount of the variable input that is being used to the amount of the fixed input that is being used.
Correct answer is option 'B'. Can you explain this answer?
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The marginal product of a variable input is best described as:a)total ...
The marginal product of a variable input is best described as the additional output resulting from a one unit increase in the variable input. In other words, it measures the change in output when one more unit of the variable input is added, while keeping all other inputs constant.
Explanation:
Definition of Marginal Product
The marginal product of a variable input is a concept in economics that measures the change in output resulting from a change in the quantity of a particular input while holding all other inputs constant.
Example:
To understand this concept better, let's consider an example. Suppose a company is producing bicycles and the variable input is labor. The company currently has 10 workers who are producing 100 bicycles per day. The marginal product of labor can be calculated by adding one more worker and measuring the change in output.
If the addition of one more worker increases the daily bicycle production to 110, then the marginal product of labor would be 10 (110 - 100). This means that adding one more worker resulted in an additional output of 10 bicycles.
Why is Option B the Correct Answer?
Option B states that the marginal product of a variable input is the additional output resulting from a one unit increase in the variable input. This aligns with the definition and explanation provided above.
Option A is incorrect because it states that the marginal product is the total product divided by the number of units of variable input. This is incorrect because the marginal product measures the additional output resulting from a change in the quantity of the variable input, not the average output per unit of input.
Option C is incorrect because it states that the marginal product is the additional output resulting from a one unit increase in both the variable and fixed inputs. This is incorrect because the marginal product only considers the change in output resulting from a change in the quantity of the variable input, while holding all other inputs constant.
Option D is incorrect because it states that the marginal product is the ratio of the amount of the variable input that is being used to the amount of the fixed input that is being used. This is incorrect because the marginal product is a measure of the change in output, not a ratio of input quantities.
Explanation:
Definition of Marginal Product
The marginal product of a variable input is a concept in economics that measures the change in output resulting from a change in the quantity of a particular input while holding all other inputs constant.
Example:
To understand this concept better, let's consider an example. Suppose a company is producing bicycles and the variable input is labor. The company currently has 10 workers who are producing 100 bicycles per day. The marginal product of labor can be calculated by adding one more worker and measuring the change in output.
If the addition of one more worker increases the daily bicycle production to 110, then the marginal product of labor would be 10 (110 - 100). This means that adding one more worker resulted in an additional output of 10 bicycles.
Why is Option B the Correct Answer?
Option B states that the marginal product of a variable input is the additional output resulting from a one unit increase in the variable input. This aligns with the definition and explanation provided above.
Option A is incorrect because it states that the marginal product is the total product divided by the number of units of variable input. This is incorrect because the marginal product measures the additional output resulting from a change in the quantity of the variable input, not the average output per unit of input.
Option C is incorrect because it states that the marginal product is the additional output resulting from a one unit increase in both the variable and fixed inputs. This is incorrect because the marginal product only considers the change in output resulting from a change in the quantity of the variable input, while holding all other inputs constant.
Option D is incorrect because it states that the marginal product is the ratio of the amount of the variable input that is being used to the amount of the fixed input that is being used. This is incorrect because the marginal product is a measure of the change in output, not a ratio of input quantities.
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The marginal product of a variable input is best described as:a)total product divided by the number of units of variable input.b)the additional output resulting from a one unit increase in the variable input.c)the additional output resulting from a one unit increase in both the variable and fixed inputs.d)the ratio of the amount of the variable input that is being used to the amount of the fixed input that is being used.Correct answer is option 'B'. Can you explain this answer?
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The marginal product of a variable input is best described as:a)total product divided by the number of units of variable input.b)the additional output resulting from a one unit increase in the variable input.c)the additional output resulting from a one unit increase in both the variable and fixed inputs.d)the ratio of the amount of the variable input that is being used to the amount of the fixed input that is being used.Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The marginal product of a variable input is best described as:a)total product divided by the number of units of variable input.b)the additional output resulting from a one unit increase in the variable input.c)the additional output resulting from a one unit increase in both the variable and fixed inputs.d)the ratio of the amount of the variable input that is being used to the amount of the fixed input that is being used.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The marginal product of a variable input is best described as:a)total product divided by the number of units of variable input.b)the additional output resulting from a one unit increase in the variable input.c)the additional output resulting from a one unit increase in both the variable and fixed inputs.d)the ratio of the amount of the variable input that is being used to the amount of the fixed input that is being used.Correct answer is option 'B'. Can you explain this answer?.
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