The physical output that is due to the addition of one more unit of a variable factor of production is
A) average total cost.
B) marginal cost.
C) average physical product.
D) marginal physical product.

Question

Quizplus · Accepted Answer

Marginal physical product (MPP) measures the change in output level resulting from the addition of one more unit of a variable input, holding all other inputs constant. Marginal cost reflects the change in cost that ensues when an additional unit of output is produced. Average total cost (ATC) is the total cost divided by the total quantity of output produced, whereas average physical product (APP) is the total output divided by the total quantity of variable input used.

The Physical Output That Is Due to the Addition of One