The marginal physical product of an input is the
A)addition to output from using one more unit of an input.
B)extra amount of an input needed to produce one additional unit of output.
C)change in average physical product, given a change in the quantity of an input.
D)slope of the production indifference curve for an output made using the input.

Question

Quizplus · Accepted Answer

The marginal physical product (MPP) of an input is the additional amount of output that is produced when one more unit of that input is added while holding all other inputs constant. It measures the change in output caused by the addition of one more unit of input. Therefore, A is the correct answer. B refers to the concept of marginal rate of technical substitution (MRTS), C refers to the concept of average physical product (APP), and D refers to the slope of an isoquant curve.

The Marginal Physical Product of an Input Is the