The amount by which output would increase if we added one more unit of capital to production, holding all other inputs fixed is called the
A) average product of capital
B) marginal product of labor
C) marginal product of capital

Question

Quizplus · Accepted Answer

The definition given in the question matches with the concept of marginal product of capital, which measures the change in output caused by adding one more unit of capital while all other inputs, including labor, remain constant. Choice A, average product of capital, is the average amount of output produced per unit of capital, whereas choice B, marginal product of labor, measures the change in output caused by adding one more unit of labor while all other inputs, including capital, remain constant.

The Amount by Which Output Would Increase If We Added