📈The marginal product is the additional output generated by adding one more unit of input.
💼Marginal product analysis helps businesses determine the impact of hiring an additional worker on production.
⏱️Marginal product is measured in physical units, such as the number of cars or tons of steel.
🔄As more units of input are added, the rate of increase in output eventually decreases.
⛔The law of diminishing returns states that adding more input eventually leads to a reduction in total output.