Marginal product of capital
- Marginal product of capital
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Marginal product of capital (MPK) is the additional output resulting from the use of an additional unit of capital (ceteris paribus assuming all other factors are fixed). It equals 1 divided by the Incremental capital-output ratio. It is the partial derivative of the production function with respect to capital.
See also
References
- "Marginal product of labor and capital", Northwestern University class handout [1]
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