Wheat Farm.
Below is the production function for a wheat farm, where the input is chemicals (oz) and the output is wheat (bu).
$\begin{array}{llll}
\underline{\mathrm{X}(\mathrm{oz})} &\underline{\mathrm{Y}(\mathrm{bu})} & \underline{\mathrm{APP}(.)} & \underline{\mathrm{MPP}(.)} \
0&0&--&--\
1 & 10 &\underline {\quad} &\underline {\quad}\
2 & 30 & \underline {\quad}&\underline {\quad} \
3 &\underline {\quad}&{13} &\underline {\quad} \
4 &{44} & \underline {\quad}& \underline {\quad} \
5 & \underline {\quad} & \underline {\quad}& 1 \
6 & 42& \underline {\quad}&\underline {\quad}
\end{array}$
-What is the MPP of using the 4th unit of input?

Question

Wheat Farm.
Below is the production function for a wheat farm, where the input is chemicals (oz) and the output is wheat (bu).
 $\begin{array}{llll}
\underline{\mathrm{X}(\mathrm{oz})} &\underline{\mathrm{Y}(\mathrm{bu})} & \underline{\mathrm{APP}(.)} & \underline{\mathrm{MPP}(.)} \
0&0&--&--\
1 & 10 &\underline {\quad} &\underline {\quad}\
2 & 30 & \underline {\quad}&\underline {\quad} \
3 &\underline {\quad}&{13} &\underline {\quad} \
4 &{44} & \underline {\quad}& \underline {\quad} \
5 & \underline {\quad} & \underline {\quad}& 1 \
6 & 42& \underline {\quad}&\underline {\quad}
\end{array}$
-What is the MPP of using the 4th unit of input?

Quizplus · Accepted Answer

MPP = Change in output / Change in input
MPP of using the 4th unit of input = (44-30)/(4-3) = 14
Therefore, the MPP of using the 4th unit of input is 14.
To determine the best choice(s), we need to look at the marginal product of the last unit of input and compare it to the cost of that unit. In this case, the MPP of the 6th unit of input is 1, which is less than the MPP of the 4th unit. Therefore, it would not be the best choice. The MPP of the 5th unit of input is also 1, which means that it would only be the best choice if the cost of that unit is less than the cost of the 4th unit. Since we do not have information about the cost, we cannot determine if the 5th unit is the best choice. Therefore, the only best choice is to use the 4th unit of input. Answer: 4.

Wheat Farm -What Is the MPP of Using the 4th Unit of Farm