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 ?
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.
The channel of effect of corruption on capital is the reduction in output quality which lowers capital's marginal product hence, average return on capital investment.
This contention is underlined by noting the fact that the marginal product of R ('land') at any intensity less than [n.
The objective can be accomplished through estimating the production function for dates and deriving marginal product and marginal revenue functions of water resources, estimating the value of the marginal revenue of water resources in the domestic market price and export price (social price for dates), and measuring the impact of changes in the prices of water resources on the water quantities used in the production of dates.
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.
your position that wages are set simply by discounted marginal product.
In order to make this somewhat subtle optimization scenario analytically tractable, some severely restrictive assumptions are required: among other things, that the workers unilaterally determine, within fixed upper and lower limits, what proportion of total output they receive (an assumption inconsistent with marginal product factor pricing), and that total output is proportional to capital stock (an assumption inconsistent with the fundamental economic principle of diminishing returns to a factor of production).
So the labor force receives an income equal to its marginal product f(k(t)) - k(t)f'(k(t)) while capital a rent equivalent to its marginal product, f'(k(t)) - [delta], where [delta] is the depreciation rate.

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