A recent flood in the Midwest has destroyed much of the farmland that lies in fertile regions near the rivers. Describe the effect of the flood on the marginal productivity of land, labor, and capital. How would the flood affect the price of inputs? Provide some examples.

Marginal Productivity

The additional output that is produced by using one more unit of a given input, while keeping other inputs constant.

Flood

An overflow of water that submerges land that is usually dry, often caused by heavy rain, melting snow, or breach in water containment systems.

Inputs

Resources used in the process of production, including labor, materials, and capital.