00:01
So what is marginal product? whenever we talk about marginal, we are talking about one additional unit of something.
00:06
This is one plus unit of x, something.
00:14
And product is basically the output of some input.
00:22
So when we're talking about marginal product, we are usually talking about how much more product, how much more of something that you produce is one additional unit of capital or labor going to provide you.
00:36
So the way to calculate that is if you have a column for the number of workers that you have, we'll denote that by labor and the amount of product you have.
00:47
If you have one, two, three, four workers.
00:50
And for each worker, for one worker you get two, or you get four pieces of clothing.
01:01
For two workers, you get seven pieces of clothing.
01:04
For three workers, you get nine pieces of clothing, and for four workers, you get ten pieces of clothing.
01:11
The marginal product of the fourth worker, the marginal product of the fourth worker would be equal to the product of the fourth worker minus, i'm going to rate pr, the product of the fourth worker minus the product of the third worker.
01:28
That's how much product that this fourth worker provides...