Consider the following statements about the total product (TP) of a variable input:
(A) TP is the relationship between the variable input and output when all other inputs are held constant.
(B) TP is also called the total return or the total physical product of the variable input.
(C) TP at any level of the input is the sum of the marginal products of every unit up to that level.
(D) TP at any level of the input is its average product multiplied by its marginal product.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (A), (B) and (C) only
Total product shows how output changes with one variable input while the other inputs stay fixed.
(A) TP is the relationship between the variable input and output when all other inputs are held constant. — Correct. This is what total product means.
(B) TP is also called the total return or the total physical product of the variable input. — Correct. All three names mean the same thing.
(C) TP at any level of the input is the sum of the marginal products of every unit up to that level. — Correct. Each MP is what one unit adds, so they add up to TP.
(D) TP at any level of the input is its average product multiplied by its marginal product. — Incorrect. AP = TP/L, so TP = AP × L, the input used. Multiplying AP by MP gives nothing useful.
NCERT (2026-27): “3.3.1 Total Product Suppose we vary a single input and keep all other inputs constant. Then for different levels of that input, we get different levels of output. This relationship between the variable input and output, keeping all other inputs constant, is often referred to as Total Product (TP) of the variable input.” “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” “3.3.3 Marginal Product … Since inputs cannot take negative values, marginal product is undefined at zero level of input employment. For any level of an input, the sum of marginal products of every preceeding unit of that input gives the total product. So total product is the sum of marginal products.” |