Production Function -What Is the MPP of Using 5 Units of Input

question 68

Multiple Choice

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 5 units of input?

• A) 5
• B) 10
• C) -10
• D) -5

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Definitions:

Labor Market

A marketplace where employers find workers and workers find jobs, governed by supply and demand for labor.

Productivity Differences

Variations in the efficiency and effectiveness with which firms or economies turn inputs into outputs.

Human-Capital Theory

A concept in economics that views individuals' skills, knowledge, and experience as economic value, suggesting that investments in education and training can enhance productivity and earnings.

Discriminatory Practices

Actions or policies that treat an individual or group unfairly based on certain characteristics, such as race, gender, age, or sexual orientation.