Average Physical Product Is Calculated by Dividing Total Product by the

question 276

Multiple Choice

Average physical product is calculated by dividing total product by the

• A) amount of variable and fixed inputs employed.
• B) quantity of the variable input.
• C) quantity of the fixed input.
• D) production function.

---

Definitions:

Income Elasticity

A measure of how the demand for a good or service changes in response to changes in income.

Price Inelastic

Refers to a situation where demand or supply for a product is relatively unresponsive to price changes.

Price Elasticity

It quantifies the sensitivity of the quantity demanded or supplied to alterations in its price.

Midpoint Formula

A mathematical formula used to find the exact middle point between two points on a line segment, commonly used in economics to calculate the elasticity of demand or supply.