marginal productivity
definition: The additional production that results from the addition of ONE MORE of any factor of production
- Answer's the question: How do you know how many factors of production do you need in order to maximize profit?
connected key terms:law of marginal return | increasing returns | diminishing returns | negative returns


everyday examples
▪ think about when you add 1 hour of study and how your grade improves
▪ 1 worker gives you 5 items, 2 workers gives you 10 items

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