Marginal physical product can tell a producer
A)at what point to stop adding inputs to the production process.
B)how much profit will be made at each level of production.
C)how much the last input added to the total amount of revenue.
D)how much the last input added to the total amount of production.

Question

Quizplus · Accepted Answer

Marginal physical product (MPP) is the additional output that is produced by adding one more unit of input to the production process. It tells the producer how much the last input added to the total amount of production, which helps them decide whether to continue adding inputs or to stop adding inputs to the production process. Therefore, the best choice is D.

Marginal Physical Product Can Tell a Producer