If the productivity of capital rises,its MPP will _____ and its MRP will ____.

Question

Quizplus · Accepted Answer

When the productivity of capital rises, its marginal physical product (MPP) will rise because each additional unit of capital will contribute more to the production process. As a result, the marginal revenue product (MRP) of capital will also rise because each additional unit of capital will generate more revenue for the firm. Therefore, both MPP and MRP will rise in this scenario.

If the Productivity of Capital Rises,its MPP Will _____ and Its