marginal physical product

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Fig. 118 Marginal physical product.

marginal physical product

the quantity of OUTPUT in the SHORT-RUN theory of supply produced by each extra unit of VARIABLE-FACTOR INPUT (in conjunction with a given amount of FIXED-FACTOR INPUT). The marginal physical-product curve, as shown in Fig. 118, rises steeply at first, reflecting increasing returns to the variable-factor input, but then falls as DIMINISHING RETURNS to the variable-factor input set in. See RETURNS TO THE VARIABLE-FACTOR INPUT, ISOQUANT MAP.
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Doors may open that would have otherwise remained closed to a foreigner abroad.Some people want to help Slovak society move forward, other people like the challenge of itThe marginal product of your effort can be much greater at home.
However, firms find it challenging to strike a balance between maximizing their marginal product of labor and minimizing the costs of labor in a delayed-retirement world.
The MRP is equal to the product of the marginal product of labour (MPL) and the marginal revenue (MR) of output, given by MRxMP: = MRPL.
CEAs survey of the academic literature suggests that each $1 of public capital spending generates between $1.08 and $1.16 of output, which corresponds to estimated net increases in the annual flow of output between $0.08 and $0.16 for each dollar of installed new infrastructurewhat economists would call the marginal product of public capital.
In the initial equilibrium, the marginal product and marginal disutility of labor are, respectively, higher and lower than during the transition.
Since under the assumed competitive conditions the marginal product of a factor equals the price of its service, this price also equals capital's marginal product.
In economic study, the principal marginal values of indicators are marginal product, margin utility, marginal profit, marginal cost, marginal revenue, marginal tendency to save and consume, marginal tax rate, marginal demand, and some others.
Previous research has indicated that through a sequence of such marginal product reformulations, it may be possible to undertake more substantial changes in food products' nutritional characteristics, and still maintain consumers' acceptance of the products."
The innovative tendencies of the young tend to raise the marginal product of capital and the real interest rate.
Our framework implies an arbitrage relationship that links the risk-free real interest rate to the marginal product of capital, or MPK (the additional output from an extra unit of physical capital, such as machinery); the depreciation rate of capital; and the risk premium (which captures the riskiness of a capital investment).
Since profit maximization entails that marginal productivity of labor is equal to the real wage rate and marginal product of capital is the price per unit of capital, it would imply that:
This says that the values of the marginal product of labor ([MPL.sub.i]) and the marginal product of capital (MPK,) are proportional to average labor productivity and capital productivity, respectively.

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