The Marginal Product of Labor is
A) the change in total product resulting from an extra unit of labor, holding other factors constant.
B) the ratio of output to the number of workers used to produce that output.
C) the amount of output that can be produced by a given amount of labor.
D) equal to the marginal product of labor when the average product is increasing.

Question

Quizplus · Accepted Answer

The definition of the marginal product of labor is the change in total output resulting from the addition of one more unit of labor, while holding all other factors constant. Therefore, choice A is the correct answer. Choice B is referring to labor productivity, which is a different concept. Choice C is incorrect because it does not take into account other factors of production. Lastly, Choice D is incorrect because the marginal product of labor can still decrease even if the average product is increasing.

The Marginal Product of Labor Is