Production Function.
Below is the production function for an agribusiness firm, where X is the input, and Y is the output.
$\begin{array}{llll}
\underline{\mathrm{X}} & \underline{\mathrm{Y}} & \underline{\text { APP }} & \underline{\mathrm{MPP}} \
0 & \underline {\quad} & -- & -- \
1 & 10 & \underline {\quad} & 10 \
2 &\underline {\quad} & 15& \underline {\quad} \
3 & 45& \underline {\quad} & 15 \
4 & 50 &\underline {\quad} & \underline {\quad} \
5 & 45 &\underline {\quad} & \underline {\quad} \
6&\underline {\quad} &6&-9
\end{array}$
-What is the MPP of using 2 units of input?

Question

Production Function.
Below is the production function for an agribusiness firm, where X is the input, and Y is the output.
 $\begin{array}{llll}
\underline{\mathrm{X}} & \underline{\mathrm{Y}} & \underline{\text { APP }} & \underline{\mathrm{MPP}} \
0 & \underline {\quad}  & -- & -- \
1 & 10 & \underline {\quad} & 10 \
2 &\underline {\quad} & 15& \underline {\quad} \
3 & 45& \underline {\quad} & 15 \
4 & 50 &\underline {\quad}  & \underline {\quad} \
5 & 45 &\underline {\quad}  & \underline {\quad} \
6&\underline {\quad} &6&-9
\end{array}$
-What is the MPP of using 2 units of input?

Quizplus · Accepted Answer

The MPP (Marginal Physical Product) of using 2 units of input is
MPP = (Y2 - Y1) / (X2 - X1) = (15-10) / (2-1) = 5
Therefore, the MPP of using 2 units of input is 5. 
To find the best choice(s), we need to compare the APP (Average Physical Product) of each level of input, and choose the one(s) where APP is highest.

APP = Y / X

When X = 1, APP = 10/1 = 10
When X = 2, APP = 15/2 = 7.5
When X = 3, APP = 45/3 = 15
When X = 4, APP = 50/4 = 12.5
When X = 5, APP = 45/5 = 9
When X = 6, APP = 6/6 = 1

Therefore, the best choice(s) are X = 3, since it has the highest APP of 15. 
Answer: 3

Production Function -What Is the MPP of Using 2 Units of Input