Example of Equal Marginal Principle

Equal Marginal Principle
If you had 10 units of input, how would you allocate them to the different enterprises
Marginal Value Product of 3 Enterprises
Input Level Enterprise A Enterprise B Enterprise C
0
1 20 18 14
2 16 13 12
3 12 11 10
4 10 9 8
5 8 7 6
6 6 6 4

Solution
Marginal Value Product of 3 Enterprises
Input Level Enterprise A Enterprise B Enterprise C
0
1
20
18 14
1 2
4
2
3
16 13 12
3 5 6
12 11 10
7 8 9
4
10
10
9 8
5 8 7 6
6 6 6 4
1 st unit of input goes to A
2 nd unit of input goes to B
3 rd unit of input goes to A
4 th unit of input goes to C
5 th unit of input goes to B
6 th unit of input goes to C
7 th unit of input goes to A
8 th unit of input goes to B
9 th unit of input goes to C
10 th unit of input goes to A
Enterprise A gets 4 units of input.
Enterprise B gets 3 units of input.
Enterprise C gets 3 units of input.