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Multi-Factor Productivity (MFP)

Definition

A measure of productivity that accounts for the contributions of multiple inputs — including labour, capital, energy, and materials — to output growth. MFP captures the efficiency with which all inputs are combined and is closely related to total factor productivity, serving as a key indicator of innovation and intangible capital contributions.

Related Terms

Management Buyout (MBO) Management Fee Mark-to-Market Mark-Up Pricing Market Approach (Valuation)

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