marginal product


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marginal product

[′mär·jən·əl ′präd·əkt]
(industrial engineering)
The extra unit of output obtained by one extra unit of some factor, all other factors being held constant.
References in periodicals archive ?
These strategies are predicated on the idea that the marginal product of those employees should exceed the costs of benefit plans and employer wage payouts.
In words, the procedure of multiplying the number of units of added capital by a marginal product estimated by dividing total capital income by the number of units of capital services used is equivalent to multiplying the growth rate of capital input by capital's income share.
While on the supply side, innovation by the young workers raises the marginal product of capital and the real interest rate, while the old inhibiting the adoption of new ideas depress the marginal product of capital and the real interest rate.
The expected benefit of one additional unit of capital is the expected additional output from that unit, which we call the expected marginal product of capital.
Marginal products of labor (MPL) and capital (MPK) can be obtained by applying the following formula:
Equation 3 interprets low average product of labor as reflecting low marginal product of labor.
whether pension freezes are bringing employee compensation more in line with their marginal product or moving it further away.
(This property of the optimum is underlined by Pitchford 1974: at the optimum the average product of labour equals the marginal product of labour).
Furthermore, if a < [L.sup.S.sub.B]/ [L.sup.U.sub.B] < 1, which implies that the number of domestic skilled workers is less than domestic unskilled workers, because of [dL.sup.U.sub.BC]/[dL.sup.S.sub.B] > 2 which implies d[[L.sup.U.sub.BC] + [L.sup.U.sub.B]]/[dL.sup.S.sub.B] > 1, we can conclude that the marginal product of skilled workers--equal to the wage rate of those workers in country B--is smaller in Case 2 than that in Case 1.
The aim of this study is to determine the pricing of water resources used in the production of dates, based on the estimated production function and the derivative functions of marginal product and the marginal water resources return.
In this article, we thus demonstrate by means of a simple search and matching model how intra-firm bargaining implies a feedback effect in the bargaining process from a firm's marginal product to wage setting.
Let's say, e.g., your position that wages are set simply by discounted marginal product.

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