Demand for an item based on the demand for products the item helps to
produce. The demand for resources is a derived demand.
The abilities, skills, and heaLth of human beings that can contribute to
the production of both current and future output. Investment in
training and education can increase the suppLy of human
resources.
Expenditures on training, education, and skill development designed to
increase the productivity of an individual.
The change in the total revenue of a firm that results from the
employment of one additional unit of a factor of production. The
marginal revenue product of an input is equal to its marginal
product multiplied by the marginal revenue (price) of the good
or service produced.
The increase in the total product resulting from a unit increase in the
employment of a variable input. Mathematically, it is the ratio
of (a) change in total product
divided by (b) change in the quantity of the variable input.
The durable, nonhuman inputs that can be used to produce both current and
future output. Machines, buildings, land, and raw materials are
examples. Investment can increase the supply of nonhuman
resources. Economists often use the term "physical
capital" when referring to nonhuman resources.
A highly aggregate market encompassing all resources
(labor, physical capital, land, and entrepreneurship)
that contribute to the production of current output. The labor
market forms the largest component of this market.
A term that refers to the ease with which factors of production are able
to move among alternative uses. Resources that can easily be
transferred to a different use or location are said to be highly
mobile. In contrast, when a resource has few alternative uses,
it is immobile. For example, the skills of a trained rodeo rider
would be highly immobile, since they cannot be easily
transferred to other lines of work.
The marginal product of a resource multiplied by the selling price of the
product it helps to produce. Under perfect competition, a firm's
marginal revenue product will be equal to the value marginal
product.
