There is a marginal product of labor of five when there are two workers in the factory compared to one.
22.
It may appear to an external observer that education has raised the marginal product of labor, without this necessarily being true.
23.
The primary concept is that there is exploitation towards a factor of production if it receives less than its marginal product.
24.
Models that assume perfect competition in the labour market, as discussed below, conclude that workers earn their marginal product of labour.
25.
It may appear to an external observer that education has raised the marginal product of labour, without this necessarily being true.
26.
The consumer products company has been getting rid of marginal products to concentrate on building global sales of its biggest brands.
27.
In other words, money flows from higher to lower marginal products until the increased investment equalises the return with that obtainable elsewhere.
28.
With a neoclassical production function with constant returns to scale, the interest rate, r, will equal the marginal product of capital per worker.
29.
The assumption of constant returns to scale facilitates the assumption of perfect competition which in turn implies that factors get their marginal products:
30.
First, the wage rate in a particular country can be shown graphical by looking at the marginal product of labor ( MPL ).
