The marginal physical product of labor is equal to
A) Total output divided by the quantity of labor.
B) The percentage change in total output divided by the percentage change in quantity of labor.
C) The change in total output divided by the change in quantity of labor.
D) The change in total revenue associated with one additional unit of input.

Question

Quizplus · Accepted Answer

The marginal physical product of labor (MPPL) is the additional output produced from hiring one more unit of labor, given that all other inputs remain constant. It is calculated by dividing the change in total output by the change in the quantity of labor used. Therefore, choice C is the correct answer. Choice A is incorrect because it only calculates the average physical product of labor, which is the total output divided by the quantity of labor. Choice B is incorrect because it is describing the concept of elasticity rather than MPPL. Choice D is incorrect because it describes the marginal revenue product of labor, which is the change in total revenue associated with one additional unit of input.

The Marginal Physical Product of Labor Is Equal to