# Define the following terms as rigorously as you can. (a) Marginal Product (of a factor of...

## Question:

Define the following terms as rigorously as you can.

(a) Marginal Product (of a factor of production)

(b) Opportunity Cost

(c) Technical Rate of Substitution

## Marginal Product, Opportunity Cost and Technical Rate of Substitution

These terms are from the production theory. Marginal product refers to the additional unit of output generated by employing an additional unit of factor input. Opportunity cost refers to the value of commodity foregone to achieve another commodity. Technical Rate of substitution refers to the rate at which one factor must decrease when another factor is increased so as to achieve the same level of output.

## Answer and Explanation: 1

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View this answer(a) Marginal Product of a factor refers to the additional Total Product or output generated by employing an additional unit of the input, keeping...

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Chapter 3 / Lesson 49Understand the meaning of marginal product of labor. Learn the marginal product of labor (MPL) formula, its significance, and how to calculate MPL with examples.

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