Question

Define Marginal Product of a factor.

Answer 1

It is the addition or the increment made to the total product when one more unit of the variable input is employed. In other words, it is the ratio of the change in the total product to the change in the units of the input. It is expressed as
MP = ∆TP/∆N
Where MP = Marginal Product
∆TP = Change in total product
∆N = Change in units of input
It is also expressed as MP = TP [n] – TP [n-1]
MP = Marginal product
TP [n] = Total product of employing nth unit of a factor.
TP [n – 1] = Total product of employing the previous unit of a factor, that is, [n – 1]^th unit of a factor.