For a given production function: Y = 10 + 0.6X (Where Y is wheat output and X is fertilizer input), the coefficient 0.6 is called as: (A). MPP (B). Slope (C). Elasticity of production (D). APP Choose the correct answer from the options given below:
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In a linear production function, the input coefficient is both the MPP and the slope.
Step 1: Differentiate \( Y = 10 + 0.6X \) to get \( \frac{dY}{dX} = 0.6 \), which is the MPP by definition. Step 2: Since the function is linear, this same value is also the slope of the line. Step 3: Elasticity \( \left(\frac{dY}{dX}\cdot\frac{X}{Y}\right) \) and APP \( \left(\frac{Y}{X}\right) \) both vary with \( X \), so they are not simply 0.6. Step 4: The coefficient 0.6 represents MPP and Slope only (Option 4).