3 Main Concepts of Marginal Product (MP): With Illustration

The following points will highlight the three main concepts of Marginal Product (MP). The concepts are: 1. MPP 2. VMP 3. MRP. MP Concept # 1. MPP: MPP is the change in total product consequent upon a change in the use of an input. For the sake of analysis, we assume that our firm uses labour as a variable input [...]