When calculating the marginal product of capital, which of the following conditions must be met?
A) The total number of units of capital employed has to be constant.
B) All other inputs must remain fixed.
C) Other inputs must be varied in the same proportion as capital.
D) Total output must be held fixed by assumption.

Question

Quizplus · Accepted Answer

The marginal product of capital is calculated by varying the amount of capital while holding all other inputs constant. This allows for the measurement of how changes in capital affect output, isolating the effect of capital from other variables.

When Calculating the Marginal Product of Capital, Which of the Following