The increase in output that results when one more unit of a variable input is hired is called

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The increase in output resulting from hiring one additional unit of a variable input is called marginal physical product (MPP). Total physical product (TPP) refers to the total output produced by all units of a variable input. Average physical product (APP) is calculated by dividing total output by the number of units of the variable input used. Marginal revenue (MR) is the extra revenue earned from selling one more unit of output.

The Increase in Output That Results When One More Unit