1. What is Marginal Product?

Marginal Product (MP) is the additional output that is produced by adding one more unit of a specific input, while keeping all other inputs constant. It is a key concept in economics and production theory.

2. How Does the Calculator Work?

The calculator uses the Marginal Product formula:

Where:

• \( MP \) — Marginal Product (units)
• \( \Delta Q \) — Change in output (units)
• \( \Delta Input \) — Change in input (units)

Explanation: The formula calculates how much additional output is generated per additional unit of input.

3. Importance of Marginal Product Calculation

Details: Understanding marginal product helps businesses determine the optimal level of input usage, identify diminishing returns, and make efficient production decisions.

4. Using the Calculator

Tips: Enter the change in output and change in input in appropriate units. Both values must be positive numbers, with the input change being greater than zero.

5. Frequently Asked Questions (FAQ)

Q1: What does a decreasing marginal product indicate?
A: A decreasing marginal product indicates the law of diminishing returns, where each additional unit of input yields less additional output than previous units.

Q2: Can marginal product be negative?
A: Yes, marginal product can become negative when adding more input actually decreases total output, indicating extreme inefficiency.

Q3: How is marginal product related to average product?
A: When marginal product is greater than average product, the average product increases. When marginal product is less than average product, the average product decreases.

Q4: What units are used for marginal product?
A: Marginal product is expressed in output units per input unit (e.g., widgets per worker, bushels per acre).

Q5: How does marginal product affect production decisions?
A: Businesses should continue increasing input as long as marginal product exceeds the cost of additional input, stopping when marginal product equals marginal cost.