Marginal Product
MP
Diminishing Marginal Returns
DMR
Derived Demand
DD
Additional output produced
when additional resource is
added
As additional variable inputs
are added to a fixed input the
marginal product decreases
Resource demand comes from
the demand for the products
made by those resources
Marginal Physical Product
MPP
Change in a firms output from
adding an extra worker
Marginal Revenue Product
MRP
Change in total revenue from
adding an additional worker
Marginal Resource Cost
MRC
Change in total cost from
adding an additional worker
Profit Maximizing Number of
Workers
Additional cost of additional
worker equals the additional
revenue gained from hiring that
worker
Change in Q/Change in
resources
Q/Variable input decreases
Increased demand for Good X
increases demand for workers
who make good X
Change in Q/Change labor
Change in TR/Change in labor
OR
(MPP)(Price of Product)
Change in TC/Change in Labor
OR
Market Wage
MRC=MRP