|
|
Marginal product |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Marginal productIn a production function, the marginal product of a factor is the increase in output due to a unit increase in the input of the factor; that is, the partial derivative of the production function with respect to the factor. In a competitive equilibrium, the equilibrium price of any factor is its marginal value product in every sector where it is employed.Similar MatchesMarginal revenueMarginal revenueThe change in total revenue as a result of producing one additional unit of output. Marginal tax rateMarginal tax rateThe tax rate that would have to be paid on any additional dollars of taxable income earned. Marginal propensity to saveMarginal propensity to saveThe fraction of a change in income (or perhaps disposable income) that is saved. Marginal revenue productMarginal revenue productThe additional revenue generated by the extra output from employing one more unit of a factor of production. In a competitive industry this equals the marginal value product, but with imperfect competition it is smaller, due to the implied price reduction. Determines factor prices in competitive factor markets. Marginal utilityMarginal utilityThe change in total satisfaction as a result of consuming one additional unit of a specific good or service. Further SuggestionsMarginal costMarginal propensity to consume Marginal propensity Marginal efficiency of capital Value marginal product Marginal rate of transformation Marginal rate of substitution Marginal propensity to import marginal tax rate Marginal Marginal value product |
|
|
|