Final answer:
The marginal gain in objective value with the addition of one more unit of a resource is known as the marginal product, which helps to determine the optimal use of resources and inputs in the stages of production. Marginal cost, the law of diminishing returns, and opportunity cost are also significant concepts related to marginal analysis in economics.
Step-by-step explanation:
The term that represents the marginal gain in objective value that occurs when one more unit of a resource is added is known as the marginal product. When analyzing the stages of production, we look at how the marginal product changes with the addition of each additional unit of input.
This helps in determining the optimal use of resources. On the other hand, marginal cost is calculated by taking the change in total cost divided by the change in output and is used to assess profitability when compared to additional revenue from selling one more unit. Additionally, understanding the law of diminishing returns is crucial as it indicates that the marginal benefit from each additional unit of input will eventually decline.
It is also important to consider the opportunity cost, which measures what is forfeited when a particular option is chosen. In broader terms, marginal analysis helps in decision-making processes to maximize utility or profit by considering a little more or less from a current situation. The market price (P) compared to the marginal cost (MC) is a critical determinant of the social benefits and costs, indicating whether more or less of a good should be produced for the optimal benefit to society.