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Define Marginal Product. - Economics

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Define marginal product.

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Solution

Marginal Product (MP) is the additional output attributed to an additional unit of the variable factor, other factors remaining constant. For example, if there is an increase in the output with more labour (1 unit), then

MPn = TPn - TPn-1

where

MPn = Marginal product of the nth unit of labour

TPn = Total product produced with n units of labour

TPn-1 = Total product produced with (n - 1) unit of labour

Concept: Marginal Product
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