Marginal Product

Marginal product refers to the additional output produced when one more unit of input is used in the production process, while keeping other inputs constant. For example, if a farmer adds one extra worker to a field, the marginal product measures how much more crop that worker helps produce compared to before. It helps businesses understand how effectively they are utilizing resources and can inform decisions on hiring or investing in equipment. Essentially, it highlights the value of each additional resource in contributing to overall production.