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If After a Change in an Allocation It Can Be

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If after a change in an allocation it can be demonstrated that the value of the gains exceeds the value of the losses, then the change is said to be potentially efficient.


Definitions:

Marginal Product

Marginal Product is the additional output produced as a result of utilizing one more unit of a particular input, holding all other inputs constant.

Stock Dividends

A form of dividend payment made by a corporation to its shareholders in the form of additional shares, rather than cash.

Factors of Production

The inputs used in the production of goods or services; traditionally includes land, labor, capital, and entrepreneurship.

Marginal Product

The additional output a firm gains from employing one more unit of input, holding the levels of all other inputs constant.

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