Marginal product of capital

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The marginal product of capital (MPK) is the additional output resulting, ceteris paribus, from the use of an additional unit of physical capital. It equals the opposite of 1 divided by the incremental capital-output ratio. It is the partial derivative of the production function with respect to capital.

MPK is equal to the rental rate of capital.

See also[edit]

References[edit]

  • "Marginal product of labor and capital", Northwestern University class handout [1]