Since the marginal product of physical capital is not higher in poor countries than in rich countries, the implication is that productivity is lower in poor countries.
42.
Finally, after a certain point, the marginal product becomes negative, implying that the additional unit of labor has " decreased " the output, rather than increasing it.
43.
In the Lazear model, firms have obvious incentives to fire older workers ( paid above marginal product ) and hire new cheaper workers, creating a credibility problem.
44.
This implies an ideal division of the income generated from output into an income due to each input factor of production, equal to the marginal product of each input.
45.
The above equation states that Marginal Product of labor is the difference of output produced from one extra unit of labor and the output produced from original quantity of labor.
46.
So the condition that the MRTS be equal to the input cost ratio is equivalent to the condition that the marginal product per dollar is equal for the two inputs.
47.
Often endogenous growth theory assumes constant marginal product of capital at the aggregate level, or at least that the limit of the marginal product of capital does not tend towards zero.
48.
As was shown in the Cambridge capital controversy, this proposition about the marginal product of capital cannot generally be sustained in multi-commodity models in which capital and consumption goods are distinguished.
49.
Often endogenous growth theory assumes constant marginal product of capital at the aggregate level, or at least that the limit of the marginal product of capital does not tend towards zero.
50.
The marginal product of labor is the slope of the total product curve, which is the production function plotted against labor usage for a fixed level of usage of the capital input.
