Marginal product of labor and capital examples
MARGINAL PRODUCT OF LABOR AND CAPITAL Assume Q f(L, K) is the production function where the amount produced is given as a function of the labor and capital used. For example, for the CobbDouglas production function Q f(L, K) ALa Kb. For a given amount of labor and capital, the ratio Q K is the average amount of production for one unit ofMay 23, 2019 Marginal Product. Similarly, the marginal product of capital is the change in output caused by a change in the amount of capital divided by that change in the amount of capital. Marginal product of labor and marginal product of capital are defined as functions of the quantities of labor and capital, respectively, marginal product of labor and capital examples
Apr 28, 2017 Marginal product of labor is the change in output when additional labor is added, such as when an additional employee is hired. It is important to point out that all other factors remain constant. In other words, with marginal product of labor, only the amount of labor changes, not any other factor involved in production.