Marginal Productivity Example
Let's extend the numerical example in the page before last and see how marginal productivity varies over a wide range of labor inputs. Here is a hypothetical example of production with the inputs of land and labor held steady and varying quantities of labor, and the output and average and marginal productivities.
Table 1
| Labor |
Output |
Average
Productivity |
Marginal
Productivity |
| 0 |
0 |
0 |
| 9.45 |
| 100 |
945 |
9.45 |
| 8.35 |
| 200 |
1780 |
8.90 |
| 7.25 |
| 300 |
2505 |
8.35 |
| 6.15 |
| 400 |
3120 |
7.80 |
| 5.05 |
| 500 |
3625 |
7.25 |
| 3.95 |
| 600 |
4020 |
6.70 |
| 2.85 |
| 700 |
4305 |
6.15 |
| 1.75 |
| 800 |
4480 |
5.60 |
| 0.65 |
| 900 |
4545 |
5.05 |
| -0.45 |
| 1000 |
4500 |
4.50 |
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