Marginal Productivity of Capital (MPC)

Marginal Productivity of Capital (MPC)

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

β€’ The MPC is net current product of the capital good minus the cost of capital good.

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