Marginal Product of Capital
The additional output generated by using an additional unit of capital.
Suppose Juan owns a shipping company. He owns 10 ships and he can ship 1000 containers with these ships. He recently purchased one more ship and now his total shipping has increased to 1080. The marginal product that is associated with the additional ship (a capital) is 80 containers.
Suppose Juan owns a shipping company. He owns 10 ships and he can ship 1000 containers with these ships. He recently purchased one more ship and now his total shipping has increased to 1080. The marginal product that is associated with the additional ship (a capital) is 80 containers.