Question

For a given production function: Y = 10 + 0.6X (Where Y is wheat output and X is fertilizer input), the coefficient 0.6 is called as:
(A). MPP
(B). Slope
(C). Elasticity of production
(D). APP
Choose the correct answer from the options given below:

• (C) only.
• (D) only.
• (C) and (D) only.
• (A) and (B) only.

Hint:

In a linear production function, the input coefficient is both the MPP and the slope.

Answer 1

The Correct Option is D

In the given linear production function, Y = 10 + 0.6X, the coefficient of the input variable X (fertilizer) represents the change in output (Y) for a one-unit change in input. This is the definition of Marginal Physical Product (MPP). In a linear function, this coefficient also represents the slope of the function when graphed.