Question

The marginal product of labor is equal to the

a. incremental profit associated with a one unit increase in labor.
b. increase in output obtained from a one unit increase in labor.
c. increase in labor necessary to generate a one unit increase in output.
d. incremental cost associated with a one unit increase in labor.

Answer 1

B. increase in output obtained from a one unit increase in labor

Step-by-step explanation:

Marginal product is the change in output as a result of a change in factor input such as labor (L) or capital (K).

Marginal product of capital is the change in output resulting from a change in capital.

It can be calculated by :

Marginal product of capital (MPK)= change in output/change in capital

That is,

MPK=∆Q/∆K

Marginal product of labor is the change in output when additional labor is added. Only labor changes in marginal product of labor. It can be calculated by

Marginal product of labor (MPL)= change in output/change in labor

That is,

MPL=∆Q/∆L