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Economics / August 19, 2021

Marginal Productivity of Capital (MPC)

• The additional physical product obtained due to the employment of one extra unit of capital (do/ dc) per unit of time. • The MPC is net current product of the capital good minus the cost of capital good. • In contrast, MEC denotes the series of increments in output anticipated over the life of […]

By · August 19, 2021 · 1 min read

• The additional physical product obtained due to the employment of one extra unit of capital (do/ dc) per unit of time.

• The MPC is net current product of the capital good minus the cost of capital good.

• In contrast, MEC denotes the series of increments in output anticipated over the life of the capital equipment.