margfaktora

Margfaktora is a term used in Swedish-language economics and business writing to refer to inputs that are analyzed when examining marginal changes in production and costs. In marginal analysis, a marginal factor (margfaktor) is an input whose addition or subtraction changes output by its marginal product, while holding other inputs constant. The marginal product of a factor is the extra output produced by using one more unit of that factor. The cost associated with employing one more unit is the marginal factor cost. The concept also connects to the marginal revenue product, the additional revenue generated by the last unit of input, which helps determine how much of the factor to employ.

Common margfaktorer include labor, physical capital, energy, and materials. The framework explains why firms adjust the use of inputs as market prices, technology, or demand change. Margfaktorer are central to decision rules that aim to maximize profit given input prices and output prices, often guiding choices about substitution between inputs and the scale of production.

In practice, marginal factors are considered alongside total factors of production and within marginal analysis to guide production planning, wage setting, automation decisions, and investment. The term is most commonly encountered in Swedish texts but is related to the broader economic concept of marginal factors or inputs used in optimizing resource allocation and pricing decisions. See also: factors of production, marginal cost, marginal product, marginal analysis.