Question

What is the marginal product of an input?

Answer 1

Marginal Product is defined as the additional output produced because of the employment of an additional unit of labour. In other words, it is the change in the total output brought by employing one additional unit of labour. Algebraically, it is expressed as the ratio of the change in the total product to the change in the units of labour employed, i.e.

`"MP"_L =(Delta"TP")/(DeltaL)="Change in Total Product"/"Change in Labour units"`

or, MP_L = TP_n - TP_n-1

Where,

TP_n = Total product produced by employing n units of labour

TP_n−1 = Total product produced by employing (n − 1) units of labour