The value of the marginal product of any input is equal to the marginal product of that input multiplied by the

Question

Quizplus · Accepted Answer

The value of the marginal product of an input tells us how much additional revenue can be generated by adding one more unit of that input to the production process. Therefore, the value of the marginal product is equal to the additional output produced by that input, multiplied by the market price of the output. The marginal cost of the output and change in total profit may also be relevant factors, but they are not directly related to the value of the marginal product.

The Value of the Marginal Product of Any Input Is