Calculating Marginal Product: Step-by-Step Guide

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Sellers need to understand the different factors of production that contribute to a wholesome output. It also helps companies identify the increase in production after adding a unit of labour. The main role of the marginal product is to use a sufficient workforce or units to generate maximum productivity and maximum revenue.


Calculating the marginal product is a simple process. Here is a step-by-step kenya phone number list guide that can help you calculate the marginal product:

Step 1: Identify the change in the inputs
Identify the change, like an increase or decrease in the input variable by machine, worker, or any other resource or input.

Step 2: Measure the old output
Make sure to measure and record the total output that is coming before changing any inputs. It is important to compare the results after changing any variable.

Step 3: Measure the new output
After changing any variable or input, measure the new total output.

Step 4: Change in output
Calculate the change in outputs by subtracting the old output from the new output to find out the total change in the output.