Total product divided by the variable input is
A) average total cost.
B) marginal cost.
C) average physical product.
D) marginal physical product.

Question

Quizplus · Accepted Answer

Total product divided by the variable input gives us the average physical product (APP), which is the average output per unit of variable input. It represents the productivity of the variable input used to produce a certain level of output. Option A is incorrect because average total cost (ATC) is total cost divided by total output, not total product divided by the variable input. Option B is incorrect because marginal cost (MC) is the additional cost incurred by producing one more unit of output, it is not related to total product and variable input. Option D is incorrect because marginal physical product (MPP) is the additional output produced by using one more unit of variable input, it is not calculated by dividing total product by the variable input.

Total Product Divided by the Variable Input Is