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The general formula for marginal physical productivity is as follows:

MPP_n = TPP_n -TPP_n-1

Where MPP_n = Marginal physical productivity for nth unit of labor

TPP_n = Total physical productivity of n units of labor

TPP_n-1 = Total physical productivity of n-1 units of labor

ii. Marginal Revenue Productivity:

Refers to the concept of marginal productivity with respect to change in total revenue. As per M.J. Ulmer, “Marginal revenue productivity may be defined as the addition to total revenue resulting from employment of one unit of a factor of production, all other things being constant.”

Let us understand the concept of marginal revenue productivity with the help of an example. Suppose one labor is able to produce wheat, which is worth of Rs. 50. If one more labor is hired, then the revenue generated from wheat would be Rs. 60. In such a case, the marginal revenue productivity for the second labor is Rs. 10 (60-50-10).