Question

A resource's ________ is the additional output that can be produced by adding one more unit of a specific input, ceteris paribus, while _______ is the average amount produced by each unit of a variable factor of production.

Answer 1

The correct answer is: marginal product; average product of labor

Step-by-step explanation:

Marginal product of a resource or input can be defined as the increase in output because of employing an additional unit of that resource or input.

It can be calculated by the ratio of change in output to change in input.

The variable factor in the short run is labor. Average unit produced by each labor unit is termed as the average product of labor.

It is calculated by the ratio of total output to quantity of labor employed.