Total product hill is:
A)A single line graph that shows the relationship between the quantity of output and the quantity of one of two inputs employed by the firm
B)A two-dimensional graph that shows the relationship between the quantity of output and the quantity of one of two inputs employed by the firm
C)A three-dimensional graph that shows the relationship between the quantity of output and the quantity of the two inputs employed by the firm
D)A four-dimensional graph that shows the relationship between the quantity of output and the quantity of the two inputs employed by the firm

Question

Quizplus · Accepted Answer

Total product hill is a three-dimensional graph that shows the relationship between the quantity of output and the quantity of two inputs employed by the firm. It is also known as a production function, where the three variables are output, labor, and capital. The graph shows how the output changes as different combinations of labor and capital are employed by the firm. Total product hill is a three-dimensional graph that shows the relationship between the quantity of output and the quantity of the two inputs employed by the firm, typically capital and labor. The graph shows that as more inputs are added, output initially increases at an increasing rate, then at a decreasing rate, until it begins to plateau and eventually decreases. The shape of the graph resembles a hill, hence the name total product hill.

Total Product Hill Is