marginal physical product

Fig. 118 Marginal physical product.

marginal physical product

the quantity of OUTPUT in the SHORT-RUN theory of supply produced by each extra unit of VARIABLE-FACTOR INPUT (in conjunction with a given amount of FIXED-FACTOR INPUT). The marginal physical-product curve, as shown in Fig. 118, rises steeply at first, reflecting increasing returns to the variable-factor input, but then falls as DIMINISHING RETURNS to the variable-factor input set in. See RETURNS TO THE VARIABLE-FACTOR INPUT, ISOQUANT MAP.