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In economics and in particular neoclassical economics, the marginal product or marginal physical productivity of an input (factor of production) is the change in output resulting from employing one more unit of a particular input (for instance, the change in output when a firm's labor is increased from five to six units), assuming that the ...
The relationship between increased investment and increased output can be represented through the concept of marginal product. When business owners invest in their company by hiring new workers, purchasing new equipment, or ordering more raw materials, they aren’t just doing this for amusement.
The marginal product is defined as the additional output that is produced by adding one more unit of a particular input. That means it is the increase in output that results from increasing the quantity of one input, while keeping all other inputs constant.
Marginal products refer to the additional output or benefit gained from employing one more unit of a variable input, such as labor or capital, while holding all other inputs constant.
Marginal product is the additional output of one more worker. Mathematically, Marginal Product is the change in total product divided by the change in labor: M P = Δ T P / Δ L M P = Δ T P / Δ L .
Marginal product refers to the additional output generated when one more unit of a variable input, like labor or capital, is added to a fixed input while keeping all other inputs constant.
Definition: Marginal product, also called marginal physical product, is the change in total output as one additional unit of input is added to production. In other words, it measures the how many additional units will be produced by adding one unit of input like materials, labor, and overhead.