Commerce Exam  >  Commerce Questions  >  How is TPP derived from MPPa)Cumulative addit... Start Learning for Free
How is TPP derived from MPP
  • a)
    Cumulative addition
  • b)
    Cumulative division
  • c)
    Cumulative product
  • d)
    Cumulative subtraction
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
How is TPP derived from MPPa)Cumulative additionb)Cumulative divisionc...
Marginal physical product (MPP) is the change in the level of output due to a change in the level of variable input; restated, the MPP is the change in TPP for each unit of change in quantity of variable input.
Total physical product (TPP) -- Quantity of output that is produced from a firm's fixed inputs and a specified level of variable inputs.
So, by adding all the MPP, TPP can be derived.
 
View all questions of this test
Most Upvoted Answer
How is TPP derived from MPPa)Cumulative additionb)Cumulative divisionc...
The correct answer is option 'A', which states that TPP (Total Physical Product) is derived from MPP (Marginal Physical Product) through cumulative addition. Let's understand this in detail.

Understanding TPP and MPP:
- TPP (Total Physical Product) refers to the total output or quantity of goods produced by a specific number of inputs, such as labor or capital.
- MPP (Marginal Physical Product) represents the additional output produced by adding one more unit of input while keeping other inputs constant.

Deriving TPP from MPP:
To derive TPP from MPP, we need to understand the relationship between the two. MPP is the rate of change of TPP with respect to the input quantity. In other words, MPP tells us how much additional output is produced when one additional unit of input is added.

Cumulative Addition:
Cumulative addition involves adding up the values of MPP for each unit of input to determine the TPP.

Here's how it works:
1. Initially, when no input is added, MPP is zero because there is no additional output produced.
2. As we start adding one unit of input, MPP will be positive and will indicate the additional output produced by that unit.
3. For the second unit of input, MPP will again indicate the additional output produced by that unit.
4. We continue this process for each additional unit of input, and for each unit, we calculate the MPP.
5. To find the TPP, we add up all the MPP values for each unit of input. This gives us the total output produced by all the units of input combined.

Example:
Let's consider an example to illustrate this concept. Suppose we have a production process where labor is the input and the output is the number of units produced.

Number of labor units: 0 1 2 3 4
MPP (Marginal Physical Product): 0 10 8 6 4
TPP (Total Physical Product): 0 10 18 24 28

In this example, the MPP values are calculated for each additional unit of labor, and the TPP is derived by adding up all the MPP values.

Conclusion:
In summary, TPP is derived from MPP through cumulative addition. By adding up the MPP values for each unit of input, we can determine the total output produced. This understanding of the relationship between TPP and MPP is crucial in analyzing production processes and making informed decisions regarding resource allocation and efficiency.
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
Explore Courses for Commerce exam

Top Courses for Commerce

How is TPP derived from MPPa)Cumulative additionb)Cumulative divisionc)Cumulative productd)Cumulative subtractionCorrect answer is option 'A'. Can you explain this answer?
Question Description
How is TPP derived from MPPa)Cumulative additionb)Cumulative divisionc)Cumulative productd)Cumulative subtractionCorrect answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about How is TPP derived from MPPa)Cumulative additionb)Cumulative divisionc)Cumulative productd)Cumulative subtractionCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for How is TPP derived from MPPa)Cumulative additionb)Cumulative divisionc)Cumulative productd)Cumulative subtractionCorrect answer is option 'A'. Can you explain this answer?.
Solutions for How is TPP derived from MPPa)Cumulative additionb)Cumulative divisionc)Cumulative productd)Cumulative subtractionCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of How is TPP derived from MPPa)Cumulative additionb)Cumulative divisionc)Cumulative productd)Cumulative subtractionCorrect answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of How is TPP derived from MPPa)Cumulative additionb)Cumulative divisionc)Cumulative productd)Cumulative subtractionCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for How is TPP derived from MPPa)Cumulative additionb)Cumulative divisionc)Cumulative productd)Cumulative subtractionCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of How is TPP derived from MPPa)Cumulative additionb)Cumulative divisionc)Cumulative productd)Cumulative subtractionCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice How is TPP derived from MPPa)Cumulative additionb)Cumulative divisionc)Cumulative productd)Cumulative subtractionCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice Commerce tests.
Explore Courses for Commerce exam

Top Courses for Commerce

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev