The marginal product of a factor of production
A) is equal to the ratio of the amount of that factor of production to the amount of output produced.
B) is equal to the amount of additional output that can be produced with one additional unit of each factor input.
C) is equal to the amount of additional output that can be produced with one additional unit of that factor input, holding constant the quantities of the other factor inputs.
D) always exceeds the average product of that factor input, holding constant the quantities of the other factor inputs.

Question

Quizplus · Accepted Answer

The marginal product of a factor of production is the additional output that can be produced with one additional unit of that factor input. It is calculated while holding constant the quantities of the other factor inputs. Therefore, option C is the correct answer. Option A is incorrect because it describes the average product, which is the total output produced divided by the amount of a specific factor input used. Option B is incorrect because it describes the marginal product of all factor inputs, not just one. Option D is incorrect because the average product may at times exceed the marginal product of a factor input.

The Marginal Product of a Factor of Production