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Marginal Productivity of Resources And Imputation of Shares For Cash and Share Rented Farms by Earl 0. Heady Department of Economics and SociologyAGRICULTURAL EXPERIMENT STATION, IOWA STATE COLLEGERESEARCH
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01
Identify the total output of the production process.
02
Determine the total input of resources used in the production process.
03
Calculate the marginal product of each additional unit of a specific resource by dividing the change in output by the change in input for that specific resource.
04
Compare the marginal productivity of resources to determine the most efficient allocation of resources.

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Business owners and managers who want to optimize their resource allocation and improve the efficiency of their production process.
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Economists and researchers studying the relationship between inputs and outputs in production.
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Policy makers looking to implement more effective resource allocation strategies in industries or economies.
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Marginal productivity of resources refers to the additional output generated by employing one more unit of a resource, while keeping other resources constant. It is a key concept in economics that helps to analyze the efficiency of resource use.
Typically, businesses and organizations that utilize labor and capital resources in their production processes are required to report on marginal productivity to assess performance and optimization.
To fill out the marginal productivity of resources, one needs to gather data on the output produced before and after adding resources, calculate the difference in output, and document it according to the required reporting format or guidelines specific to the entity or sector.
The purpose of marginal productivity of resources is to evaluate the efficiency of resource use, inform decision-making regarding resource allocation, and identify areas for improvement in production processes.
Information that must be reported includes the quantity of each resource used, the output produced, any changes in productivity, and relevant calculations demonstrating marginal product.
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