The term "Marginal Product" refers to the additional output generated when one more unit of a specific input, such as labor or capital, is added to the production process. It helps businesses understand how changes in input levels affect overall production efficiency and output. For example, if a factory employs one more worker and produces 10 additional units of a product, the Marginal Product of that worker is 10 units. This concept is crucial in economics, as it aids in decision-making regarding resource allocation and optimizing production levels.