The question is "define what the concept of marginal productivity is, while applying it to several examples and applications."
Marginal productivity is the additional output the next unit of labor or capital will produce, holding other inputs constant. This concept is closely tied to other concepts, such as marginal product, average productivity, and marginal revenue product. Marginal product is the total output divided by the change in variable output. The marginal revenue product is the additional revenue that can be garnered from this additional output.
Productivity is a measure of how well the company is using its resources. When average productivity rises, it means the company is producing more with the same amount. When it falls, both marginal costs and average costs must increase, although they will increase at different rates. Because the total cost of producing the same amount has increased, average cost increases. Marginal ...
Marginal productivity importance and implications