Question

1
-. Which of the following can have a negative value?
(A) Marginal physical product
(B) Average physical product
(C) Total physical product
(D) None of the above​

Answer 1

Answer:

v average physical product

Answer 2

Answer:

Marginal Physical Product can have negative value.

Explanation:

• the marginal physical product (MPP) is the change in TPP for each unit of change in quantity of variable input. It is the change in output level caused by a change in the level of variable input.
• If the marginal physical product of labor, for instance, is 25 tacos, then hiring the final worker results in a 25 taco increase in total output. Does this imply that the last employee made 25 tacos by hand? Not at all, no. or at the very least, not always.
• Formula- MP = ΔY/ΔX
• MP stands for marginal product.
• ΔX = modification to how the firm uses the input
• ΔY = modification in the output's volume (ignoring external cost and benefits).

Thus the correct option is Option A.

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