Explain the difference between MPP & TPP.
Dear Student,
Marginal Product or Marginal Physical Product is defined as the additional output produced because of the employment of an additional unit of labour. In other words, it is the change in the total output brought by employing one additional unit of labour.
Marginal Product or Marginal Physical Product is defined as the additional output produced because of the employment of an additional unit of labour. In other words, it is the change in the total output brought by employing one additional unit of labour.
Algebraically, it is expressed as the ratio of the change in the total product to the change in the units of labour employed, i.e.
Where,
TP n = Total product produced by employing n units of labour
TP n −1 = Total product produced by employing (n − 1) units of labour
Total Product or Total Physical Product is defined as the sum total of output produced by a firm with the all units of inputs- both variable and fixed factors.