1. What is Marginal Product?

Marginal Product (MP) is the additional output produced by using one more unit of a given input while holding other inputs constant. It's a key concept in production theory and microeconomics.

2. How Does the Calculator Work?

The calculator uses the Marginal Product formula:

Where:

• \( \Delta Output \) — Change in output quantity (units)
• \( \Delta Input \) — Change in input quantity (units)

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

3. Importance of Marginal Product

Details: Understanding MP helps businesses determine optimal input levels, identify diminishing returns, and make efficient production decisions.

4. Using the Calculator

Tips: Enter the change in output and change in input in their respective units. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What does a high MP indicate?
A: A high MP suggests that adding more input is currently very productive, before diminishing returns set in.

Q2: What is diminishing marginal product?
A: This occurs when each additional unit of input adds less to total output than the previous unit did.

Q3: Can MP be negative?
A: Yes, negative MP means adding more input actually decreases total output, indicating extreme overuse of that input.

Q4: How does MP relate to marginal cost?
A: There's an inverse relationship - when MP is high, marginal cost tends to be low, and vice versa.

Q5: What's the difference between MP and average product?
A: MP measures the change from the last unit, while average product is total output divided by total input.