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Chapter 7: Q 14. (page 184)

How do we calculate marginal product?

Short Answer

Expert verified

The marginal product (MP) is calculated by dividing the change in the total product by the change in the amount of the input (labor).

Step by step solution

01

Step 1. Marginal product 

Marginal product is the amount of product obtained by employing an additional unit of input (say labor).

02

Step 2. Calculation of marginal product

The marginal product (MP) can be obtained by dividing the change in the total product by the change in the amount of the input (labor). Algebraically,

MP=∆TP∆L

Where, TP = total product, L = labor,∆= change.

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