Marginal output refers to the increase in output by adding one unit of production factor under a certain factor of production. It indicates the extent to which the addition of one unit of factor of production contributes to the total output. Marginal output is an important concept in microeconomics, which has important guiding significance for production decision-making and resource allocation.
Marginal production can be measured by calculating marginal products. Marginal product measures the additional output that comes from adding one unit of factor of production while other factors of production remain constant. Marginal product and marginal production are closely related concepts, and they are often used interchangeably.
Let's take a simple example to illustrate marginal yield. Let's say a restaurant currently has only one chef cooking and is capable of cooking 100 dishes per day. If you hire another chef and you can add 50 dishes per day, then that 50 dishes are the newly increased marginal production, or marginal product. If you hire a third chef, you may be able to add 30 dishes per day, and these 30 dishes are the marginal output of the second chef. It can be seen that the marginal output decreases with the increase of the factors of production, because with the increase of the factors of production, the efficiency of production tends to decrease.
The concept of marginal output can also be applied to other areas such as land, capital, and labor. Using land as an example, if there is a piece of farmland, the marginal yield of wheat is the amount of harvest that can be increased for each additional unit of planting funds (e.g., fertilization). This concept is very important for deciding how to make the most efficient use of limited resources.
In summary, marginal output refers to the additional output brought about by adding a unit of production factor, which plays an important role in production decision-making and resource allocation. By measuring marginal output, we can better understand the contribution of factors of production and the efficient use of resources. Finance and accounting