The marginal physical product is the
A) Change in total input required to produce one additional unit of output.
B) Change in total output associated with one additional unit of the variable input.
C) Number of units of output obtained from all units of input employed.
D) Additional cost of an additional unit of output.

Question

Quizplus · Accepted Answer

The marginal physical product (MPP) is the change in total output associated with one additional unit of the variable input. It tells us the amount by which the total output changes when we increase the quantity of a variable input used by one unit, assuming that all other inputs are held constant. Therefore, the best choice is B.

The Marginal Physical Product Is the