-In Exhibit Q-1, the MPP of the 12th unit of capital (or loanable funds) is

Name: -In Exhibit Q-1, the MPP of the 12th unit of capital (or loanable funds) is
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Question

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The Marginal Physical Product (MPP) of the 12th unit of capital is calculated by finding the difference in total output when the amount of capital is increased from 11 units to 12 units. If the output increases from 106 units to 113 units with the addition of the 12th unit of capital, the MPP is the difference, which is 7 units of output.

-In Exhibit Q-1, the MPP of the 12th Unit of Capital