| Marginal Product |
Article Index for Marginal |
Website Links For Product |
Information AboutMarginal Product |
| CATEGORIES ABOUT MARGINAL PRODUCT | |
| economics of production | |
|
:marginal product of X used in producing '''Y''' = Δ'''Y'''/ΔX = (the change of '''Y''')/(the change of X). In Neoclassical Economics , this is the mathematical Derivative of the Production Function . Note that the "product" (Y) is typically defined ignoring External Costs And Benefits . In the "law" of Diminishing Marginal Returns , the marginal product of one input is assumed to fall as long as some other input to production does not change. In the neoclassical theory of the Competitive Markets , the marginal product of labor equals the Real Wage . Similarly, under the same conditions, the marginal product of Capital equals its Rate Of Return . But there have been severe Criticisms of this theory. |
|
|