The marginal product of an individual
A) depends on the number of similar workers that the firm employs as well as on the size of the firm's capital stock.
B) is solely a function of the worker's personal characteristics.
C) is a poorly defined concept because individual effort is difficult to identify and measure.
D) initially decreases but ultimately increases beyond the minimum effort level.

Question

Quizplus · Accepted Answer

The marginal product of an individual worker depends on the number of similar workers and the size of the capital stock because these factors affect the availability of resources and the level of division of labor. The individual worker's personal characteristics may also influence their productivity, but they are only one part of the overall picture. The concept of marginal product is well defined and widely used in economics, and while it may vary over time or with changes in input levels, it is a useful tool for understanding how changes in labor affect output. The marginal product typically initially increases, but eventually reaches a point of diminishing returns where additional effort or resources result in proportionally less output.

The Marginal Product of an Individual