Question

Find TPP when 5 units of the variable factor are combined with 5 units of the fixed factor and MPP remains constant at 10 units:

• A. 25
• B. 75
• C. 50
• D. 250

Hint:

A constant MPP implies constant returns to the variable input. Under constant returns, simply multiply the input units by the marginal product.

Answer 1

The Correct Option is C

Step 1: Understanding the Concept:
Total Physical Product (TPP) is the sum of the Marginal Physical Products (MPP) of each unit of the variable input employed.
Key Formula or Approach:
The relationship between TPP and MPP is:
\[ \text{TPP} = \sum \text{MPP} \] When the MPP remains constant for all units:
\[ \text{TPP} = n \times \text{MPP} \] where $n$ is the number of units of the variable factor.

Step 2: Detailed Explanation:
We are given:
- Number of variable factor units ($n$) = 5.
- Marginal Physical Product (MPP) = 10 units (constant for all units).
Applying the formula:
\[ \text{TPP} = 5 \times 10 = 50 \text{ units} \] The 5 units of the fixed factor remain constant and do not affect the short-run variable product calculation.

Step 3: Final Answer:
The TPP is 50 units, which matches Option (C).