marginal physical product การใช้

• A firm's labour demand is based on its marginal physical product of labour ( MPP L ).
• The MRP is calculated by multiplying the price of the end product or service by the Marginal Physical Product of the worker.
• In terms of neoclassical theory, the prevailing real wage is less than the marginal physical product of labor in this situation.
• This is because in competitive markets price is equal to marginal revenue, and marginal revenue product is defined as the marginal physical product times the marginal revenue from the output ( MRP = MPP * MR ).