The marginal product of any factor of production depends on
A)the quantity of the factor used.
B)the price of the final good.
C)the demand for the final good.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

The marginal product of any factor of production is the additional output that is produced when one unit of that factor is added to the production process, while holding all other factors constant. Therefore, the quantity of the factor used is the main determinant of its marginal product, as it directly affects the amount of additional output that can be produced by adding another unit of that factor. The price of the final good and demand for the final good may indirectly affect the marginal product by influencing the level of production and the inputs that are used, but they are not direct determinants of the marginal product.

The Marginal Product of Any Factor of Production Depends on