Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Production and Costs

Question:
For the first unit of the variable input, which one of the following is true?
Options:
MP and AP are the same
MP >AP
AP > MP
MP can be greater or equal to AP
Correct Answer:
MP and AP are the same
Explanation:
MP is the output from one additional unit of variable unit. So, when first unit of variable input (say, labour) is employed, the output produced is MP itself. And AP is the total product divided by the number of units of variable input. For the first unit, the output produced is nothing but TP and dividing that TP by number of units of variable input (that is, 1) we get TP only. And for the first unit TP and MP are the same as MP is the change in TP