Value of marginal product (VMP)
By William Clark •
Value of marginal product (VMP),
Definition of Value of marginal product (VMP):
Marginal physical output of a factor input multiplied by the unit price of the output. VMP is a measure of a firms revenue contributed by the last unit of a productive factor employed.
Meaning of Value of marginal product (VMP) & Value of marginal product (VMP) Definition
