The marginal product of an input is:
A) total product divided by the amount of the input used to produce this amount of output.
B) the addition to total output that adds nothing to total revenue.
C) the addition to total output that adds nothing to profit.
D) the addition to total output due to the addition of one unit of all other inputs.
E) the addition to total output due to the addition of the last unit of an input, holding all other inputs constant.

Question

Quizplus · Accepted Answer

The marginal product of an input refers to the additional output that is produced when the firm adds one more unit of that input, holding all other inputs constant. In other words, it measures the effect that an additional unit of a particular input has on total output. Therefore, the best choice is E, as it describes the addition to total output due to the addition of the last unit of an input while holding constant the other inputs.

The Marginal Product of an Input Is