How To Calculate The Capital’S Marginal Productivity?

The Marginal Product of Capital (MPK) is a concept in economics that refers to the additional output or production yield resulting from a one-unit increase in the input (usually labor or capital) and output (usually units). It is calculated by dividing the change in output divided by the change in capital, given that all else is equal. For example, if output increased by 20 and capital increased by 4, MPL = 20 / 4 = 5.

The formula for calculating the marginal product of capital is as follows: (Q = f(L, K)), where Q is the quantity produced, L is the labor input, and K is the capital input. This formula takes into account the change in output per worker for one additional unit of capital per labor. The marginal product of capital is the marginal increase in output per worker for one additional unit of capital per labor.

In summary, the marginal product of capital (MPK) is the incremental increase in total production that results from one unit increase in capital. It represents the relationship between increased investment and increased output, and can be calculated by dividing the change in output divided by the change in capital. The formula for calculating the marginal product of capital is as follows: (Q = f(L, K)), where Q is the quantity produced, L is the labor input, and K is the capital input.