agr 553 chap 2

What is the term used to refer to incremental changes at the edge or at the 'margin'?

• Maximum

• Total

• Average

• Extra

What does TPP stand for in the context of agricultural production?

• Total Profit Potential

• Total Productivity Percentage

• Total Physical Product

• Total Production Process

What does APP represent in the production function?

• Average Profit Potential

• Average Physical Product

• Average Production Process

• Average Productivity Percentage

What happens in Stage III of production according to the text?

• APP decreasing, MPP

• TPP decreasing, MPP<0

• APP increasing, MPP

• APP increasing, MPP>APP, TPP increasing

What does the inflection point in a neoclassical production function signify?

• Decrease in total output

• Maximum output reached

• Start of increasing marginal returns

• Start of diminishing marginal returns

What does the term 'elasticity of production' measure?

• Percentage change in output divided by the percentage change in input

• Additional TPP produced by using an additional unit of input

• Average amount of output produced per unit of input used

• Total output produced per unit of input used

What does an Ep value greater than 1 indicate in terms of production function responsiveness?

• Output does not change with input use

• Output will decrease as input use increases

• Output remains constant regardless of input use

• Output responds strongly to increases in input use

What is the relationship between APP and MPP in a neoclassical production function?

• APP and MPP have no correlation

• APP and MPP are always equal in value

• APP increases past the inflection point until it reaches MPP, then declines

• APP decreases past the inflection point until it reaches MPP, then increases

What is the purpose of the Law of Diminishing Marginal Returns in agricultural production?

• To show the relation between input and output

• To increase total output with minimal input

• To ensure maximum output is always achieved

• To prevent overuse of variable inputs

What is the main characteristic of a fixed input in agricultural production?

• Increases total output when used

• Varies based on the level of use

• Can be controlled or altered by the farm manager

• Has no control over the amount available