Enter the increase in production output and the marginal product into the Calculator. The calculator will evaluate the Variable Input.
Variable Input Formula
VI = IP / MP
Variables:
- VI is the Variable Input ()
- IP is the increase in production output
- MP is the marginal product
To calculate Variable Input, divide the increase in production output by the marginal product.
How to Calculate Variable Input?
The following steps outline how to calculate the Variable Input.
- First, determine the increase in production output.
- Next, determine the marginal product.
- Next, gather the formula from above = VI = IP / MP.
- Finally, calculate the Variable Input.
- 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.
increase in production output = 74
marginal product = 30
FAQs
What is Variable Input in production?
Variable Input refers to any input in the production process that can be adjusted in the short term to influence the output. It’s calculated by dividing the increase in production output by the marginal product.
How does Marginal Product affect Variable Input?
The Marginal Product (MP) is a key factor in determining the Variable Input (VI). As MP increases, the VI decreases for a given increase in production output, indicating more efficient use of inputs.
Why is understanding Variable Input important?
Understanding Variable Input is crucial for businesses as it helps in optimizing production processes, reducing costs, and improving profitability by efficiently managing the inputs that can be adjusted in the short term.
Can Variable Input change over time?
Yes, Variable Input can change over time as it is dependent on the Marginal Product and the increase in production output, both of which can vary with changes in technology, input quality, and scale of production.
