The marginal physical product of labor is a short-run concept because:
A) labor is fixed.
B) all inputs except labor are fixed.
C) labor is variable.
D) all inputs except labor are variable.

Question

Quizplus · Accepted Answer

The marginal physical product of labor is considered a short-run concept because, in the short run, all inputs except labor are fixed. This means that firms can adjust the amount of labor they use to change output levels, but other factors like capital are held constant.

The Marginal Physical Product of Labor Is a Short-Run Concept