Marginal product of a factor, Microeconomics

Marginal Product (MP) of a Factor:

From the above mentioned production function, immediately we can study the effect on total output when there is a variation in labour utlilisation, keeping the other factor K, fixed. Thus, we have the marginal physical product, which shows the change in output quantity for a unit change in the quantity of an input, (L), when all other inputs (K) are held constant. Mathematically, it is given by the first partial derivative of a production function with respect to labour. Thus,   

2340_Marginal Product (MP) of a Factor.png

It is reasonable to expect that the marginal product of an input depends on the quantity used of that input. In the above example, use of labour is made keeping the amount of other factors (such as equipments and land) fixed. Continued use of labour would eventually exhibit deterioration in its productivity. Thus, the relationship between labour input and total output can be recorded to show the declining marginal physical productivity. Mathematically, the diminishing marginal physical productivity is assessed through the second-order partial derivative of the production function.  Thus, change in labour productivity can be presented as:  

1223_Marginal Product (MP) of a Factor1.png

Similarly 

210_Marginal Product (MP) of a Factor2.png

Posted Date: 10/26/2012 6:06:39 AM | Location : United States







Related Discussions:- Marginal product of a factor, Assignment Help, Ask Question on Marginal product of a factor, Get Answer, Expert's Help, Marginal product of a factor Discussions

Write discussion on Marginal product of a factor
Your posts are moderated
Related Questions
When the demand function is 2Q - 24 + 3P = 0, find the marginal revenue when Q=3.

Trade union can also pay a useful role in improving the wages of the workers without causing adverse effects on employment. This case which is intensely associated with the idea of

A country s choice among the production of education and nuclear submarines is an issue of opportunity cost. Explain the issue using a PPF. Resources are limited whereas

Effects of inflation: On Income Earners:Those on fixed incomes or assets (fixed in nominal terms) lose. However, those on incomes, which are directly related to the price leve

Income and Substitution Effects A fall in price of a good has the two effects: Substitution & Income -Substitution Effect Consumers will tend to buy more of the good

Write the formulas to show the reactants and products for the following reactions. Assume that solutions are aqueous unless otherwise indicated. Represent substances in solutions a

chemistry assignments ,  Some normally nonmagnetic substances are attracted by a magnetic field and studies of these "paramagnetic" substances give information about the number of

how to calculate out put and price

Describe stabilisation policies as by the International Monetary Fund (IMF). Define stabilisation policies as basically a list of demands set forward by the IMF to a debtor nat

Development: Economic development is the process through that a country's economy expands and improves in both qualitative and quantitative terms. Economic development requires co