How do you calculate marginal product?
Understand the Problem
The question is asking for the method of calculating marginal product, which is a concept in economics that refers to the additional output generated by adding one more unit of a variable input while keeping other inputs constant. The high-level approach to solve this involves understanding the production function and determining the change in output associated with a change in input.
Answer
The change in output divided by the change in input.
The final answer is the change in output divided by the change in input.
Answer for screen readers
The final answer is the change in output divided by the change in input.
More Information
The marginal product helps businesses determine the optimal level of resources to maximize output.
Tips
Don't forget to accurately measure both the change in output and the change in input; otherwise, the calculation will be incorrect.
Sources
- Investopedia - Marginal Product - investopedia.com
