[This is part of the series: The Complete Guide To Economics 101.]
What is marginal product?
Marginal Product is the change in output that results from one more unit of input.
For example:
Say you manufacture cars, and can produce 100 cars per day.
Marginal product takes one of the inputs to producing cars and asks a question like:
If we hired one more plant employee, how many more cars could we produce each day?
Formally:
Marginal Product = Change in Ouput / Change in Input