Multiple choice

The marginal product of a variable input is best described as

  1. the total product divided by the number of units of variable input

  2. the additional output resulting from one unit increase in the variable input

  3. the additional output resulting from one unit increase in both the variable and fixed inputs

  4. the ratio of the amount of the variable input that is being used to the amount of the fixed input

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Marginal product measures the extra output gained from adding one more unit of a variable input (like labor), while keeping other inputs fixed. Option B correctly captures this definition as the incremental output from the additional input unit. Option A describes average product (total output divided by total input), not marginal. Option C is incorrect because fixed inputs don't change in the marginal product calculation. Option D describes input ratio, not output change.

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