ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The additional output produced as a result of employing an additional unit of the variable factor input is called the Marginal Product. Thus, we can say that marginal product is the addition to Total Product when an extra factor input is used.

Detailed explanation-2: -Marginal product of an input is the additional output as a result of a unit change in the input.

Detailed explanation-3: -Marginal product is defined as the change in total product due to a change in variable input as in the short run, fixed costs do not change with the level of production. Thus the only extra cost incurred will have to arise solely from variable inputs.

Detailed explanation-4: -The marginal product of an input, say labour, is defined as the extra output that results from adding one unit of the input to the existing combination of productive factors.

Detailed explanation-5: -Marginal Product Examples A startup business is currently producing 2, 000 units per month with their current production inputs. After a successful presentation to investors, they receive an investment of $100, 000, which allows them to increase their production to 8, 000 units per month.