This partial production function shows how output increases as
more labour is being employed while the capital stock remains fixed.
Its graph is obtained by placing a vertical cut through the 3D production
function parallel to the axis that measures labour.
The slope of the partial production function measures how much output
is gained by a given small increase of labour. This slope is called
the marginal product of labour. The two tangency lines measure this
marginal product of labour at L1 and L2. They
indicate that the marginal product of capital becomes smaller and
smaller as more and more work-hours are being employed.
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