| 11. | However, as the number of workers increases, the marginal product of labor may not increase indefinitely.
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| 12. | Because each worker has more capital goods to work with, his or her marginal product rises.
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| 13. | The offered wage is the expected marginal product.
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| 14. | Under certain assumptions, the production function can be used to derive a marginal product for each factor.
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| 15. | As more and more of variable input ( labor ) is employed, marginal product starts to fall.
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| 16. | We know that the MRTS is equal to the ratio of the marginal products of the two inputs.
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| 17. | I'd dispute this; personally I'd argue that the wage these bankers receive isn't tied to their marginal product.
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| 18. | The discussion stems from the economic theory that capital flows act to equalize marginal product of capital across nations.
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| 19. | Profits can be maximised when the marginal product of labour equals the wage rate ( marginal cost of production ).
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| 20. | In summation, the savings rate times the marginal product of capital minus the depreciation rate equals the output growth rate.
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