Question

The marginal product of labor is the:

a. additional amount of output that can be produced from hiring one more worker.
b. additional amount of inputs a firm demands based on a change in consumer demand for the output.
c. decreasing amount of output that can be produced from hiring one more worker.
d. value of production from the last worker hired.
e. additional amount of consumer goods that can be bought from an additional hour’s worth of work.

Answer 1

Option (a) is correct.

Step-by-step explanation:

The Marginal product of labor is defined as the extra units of output produced from hiring one more labor. The formula for marginal product of labor is as follows:

Change in output per unit change in labor:

`MP_(L)=(Change\ in\ o/p)/(change\ in\ Labor)`

Graphically, the marginal product of labor is the slope of the production function for a particular firm and it is calculated by differentiating production function with respect to labor.