In the classical model it is assumed that both sides know how much work effort and marginal product the employee contributes.

However, as the number of workers increases, the marginal product of labor may not increase indefinitely.

The marginal product of labor is directly related to costs of production.

The marginal physical product of labour curve shifts to the right.

And Arctic oil remains a marginal product due to the technically challenging nature of drilling up there.

The higher prices are usually paid because the marginal product of capital is higher for people with little or no access to it.

Economic theory says that people get paid according to their marginal product - what they contribute to society.

Under certain assumptions, the production function can be used to derive a marginal product for each factor.

This takes place when marginal physical product of a factor must be the same for all firms producing a good.

It can be roughly considered to be equivalent to the marginal product of new capital.