AP MicroeconomicsProduction & Costs
Marginal Product
Marginal Product is the additional output produced by adding one more unit of a variable input, holding all other inputs constant.
It is calculated as the change in total product divided by the change in the variable input. Marginal product typically rises at first due to increased efficiency, then falls due to the law of diminishing marginal returns.
Formula / Example
MP = ΔTP / ΔL
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