Enter the change in output and the change in input into the calculator to determine the marginal productivity. This calculator helps in understanding the additional output generated by the last unit of input.
Marginal Productivity Formula
The following formula is used to calculate the marginal productivity.
MP = ΔQ / ΔI
Variables:
- MP is the marginal productivity
- ΔQ is the change in output (units)
- ΔI is the change in input (units)
To calculate marginal productivity, divide the change in output (ΔQ) by the change in input (ΔI).
What is Marginal Productivity?
Marginal productivity measures the additional output that can be produced by adding one more unit of a specific input, while holding all other inputs constant. It is a concept used in economics to analyze the efficiency of inputs in the production process. A higher marginal productivity indicates that the input is being used effectively to increase output.
How to Calculate Marginal Productivity?
The following steps outline how to calculate the Marginal Productivity.
- First, determine the change in output (ΔQ) in units.
- Next, determine the change in input (ΔI) in units.
- Next, gather the formula from above = MP = ΔQ / ΔI.
- Finally, calculate the Marginal Productivity (MP).
- After inserting the variables and calculating the result, check your answer with the calculator above.
Example Problem :
Use the following variables as an example problem to test your knowledge.
Change in output (ΔQ) = 50 units
Change in input (ΔI) = 5 units
