In short run TPP changes with the change ina)Marginal Productb)Average productc)Total Productd)Average costCorrect answer is option 'A'. Can you explain this answer?

Question

Answer

Total production product changes with the marginal utility of the product .....

Answer

Because TP increases at diminishing rate of MPand TP is maximum when MP=0

Answer

A

Answer

In the short run, the Total Product (TP) of a firm refers to the total quantity of output that can be produced by employing different amounts of a variable input, while keeping other inputs constant. The Average Product (AP) is derived by dividing the Total Product by the quantity of the variable input, and it represents the average output per unit of the variable input. The Marginal Product (MP) is the additional output that is generated by employing one additional unit of the variable input, while keeping other inputs constant. The Average Cost (AC) is the total cost divided by the quantity of output, and it represents the cost per unit of output.

- Marginal Product (MP):
The Marginal Product measures the change in Total Product resulting from a change in the quantity of the variable input. It is calculated by dividing the change in Total Product by the change in the quantity of the variable input. In the short run, as the Marginal Product increases, it means that adding an additional unit of the variable input leads to a greater increase in output. This can be due to factors such as specialization or better utilization of fixed inputs. Therefore, as the Marginal Product changes, it affects the firm's production and output levels.

- Average Product (AP):
The Average Product represents the average output per unit of the variable input. It is calculated by dividing the Total Product by the quantity of the variable input. In the short run, the relationship between Marginal Product and Average Product is important. When the Marginal Product is greater than the Average Product, it causes the Average Product to increase. Conversely, when the Marginal Product is less than the Average Product, it causes the Average Product to decrease. Therefore, any change in the Marginal Product will impact the Average Product and subsequently affect the firm's production and output levels.

- Total Product (TP):
The Total Product refers to the total quantity of output that can be produced by employing different amounts of a variable input, while keeping other inputs constant. In the short run, changes in the Marginal Product and Average Product will directly affect the Total Product. An increase in the Marginal Product will result in a greater increase in Total Product, while a decrease in the Marginal Product will lead to a smaller increase in Total Product. Similarly, an increase in the Average Product will cause an increase in Total Product, while a decrease in the Average Product will result in a decrease in Total Product.

- Average Cost (AC):
The Average Cost represents the cost per unit of output and is calculated by dividing the total cost by the quantity of output. In the short run, changes in the Marginal Product and Average Product can indirectly impact the Average Cost. When the Marginal Product is greater than the Average Product, it causes the Average Product to increase, which can result in a decrease in Average Cost. Conversely, when the Marginal Product is less than the Average Product, it causes the Average Product to decrease, leading to an increase in Average Cost. Therefore, any changes in the Marginal Product and Average Product can influence the firm's Average Cost in the short run.

In conclusion, in the short run, changes in the Marginal Product affect the firm's production and output levels, which in turn impact the Average Product, Total Product, and Average Cost.

Answer

What is TPP

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