Question

The marginal product of labor (MPL) can be defined as which of the following?

A) The change in output costs when another worker is hired

B) The change in output level as the result of hiring another worker

C) The change in the wage rate as the result of hiring another worker

D) The change in capital productivity when another worker is hired

Answer 1

The marginal product of labor (MPL) can be defneed as

B. Chnge in output level as the resulting of hiring another worker

MPL marginal productivity of a labor is the change in output due to change in number labor employed. As labor is also a factors of production so any change in the number of the labor will effect the productivity of labor plus output level keeping other inputs constant.

We can express it with this formula

Where as is change in one unit of input.( It can be anything land , labor or capital)

and is the change in level of output.