- CFA Exams
- CFA Exam: Level I 2021
- Study Session 4. Economics (1)
- Reading 12. Topics in Demand and Supply Analysis
- Subject 4. Marginal Returns and Productivity
CFA Practice Question
Which one does not provide an in-depth view of a firm's state of efficiency?
B. Marginal product
C. Average product
A. Total product
B. Marginal product
C. Average product
Correct Answer: A
Total product is simply an indication of a firm's output volume and potential market share. Marginal product and average product are better gauges of a firm's productivity.
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