11. However, as the number of workers increases, the marginal product of labor may not increase indefinitely. 12. Because each worker has more capital goods to work with, his or her marginal product rises. 13. The offered wage is the expected marginal product . 14. Under certain assumptions, the production function can be used to derive a marginal product for each factor. 15. As more and more of variable input ( labor ) is employed, marginal product starts to fall. 16. We know that the MRTS is equal to the ratio of the marginal products of the two inputs. 17. I'd dispute this; personally I'd argue that the wage these bankers receive isn't tied to their marginal product . 18. The discussion stems from the economic theory that capital flows act to equalize marginal product of capital across nations. 19. Profits can be maximised when the marginal product of labour equals the wage rate ( marginal cost of production ). 20. In summation, the savings rate times the marginal product of capital minus the depreciation rate equals the output growth rate.
