The total return to a variable input is the same as its:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → total product
Total return and total physical product are other names for total product. In the same way, AP and MP are called average and marginal returns.
NCERT (2026-27): “3.3.1 Total Product … Let us again look at Table 3.1. Suppose capital is fixed at 4 units. Now in the Table 3.1, we look at the column where capital takes the value 4. As we move down along the column, we get the output values for different values of labour. This is the total product of labour schedule with K2 = 4. This is also sometimes called total return to or total physical product of the variable input. This is shown again in the second column of table in 3.2” Glossary: “Total return – Same as the total product.” |