Unformatted text preview: . It is important to note that the marginal product is essentially an outcome of the functioning of variable input units. This is because fixed inputs are not themselves capable of producing any output. In this sense fixed inputs are ’ supplementary ’ while variable units are ’ prime ’ in their contributions. This can be illustrated with the help of a numerical example. The entire process of productive activity in the example is subject to the law of variable returns....
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- Fall '10
- Economics, Marginal product, Input/output