Marginal Physical Product

Question

Quizplus · Accepted Answer

Marginal Physical Product (MPP) is the additional output produced when an additional unit of input is added. It is calculated as the derivative of Total Physical Product (TPP) with respect to the quantity of input. Therefore, MPP is the rate of change in TPP. Choice A is incorrect because Average Physical Product (APP) is the output per unit of input, and there is no direct relationship between MPP and APP. Choice C is incorrect because MPP can never be equal to APP since MPP measures the change in output resulting from a change in input, while APP is the average output per unit of input. Choice D is incorrect because only choice B is the correct answer.