The marginal product of labor is defined as
A)the additional sales revenue that results when one more worker is hired.
B)the additional output that results when one more worker is hired, holding all other resources constant.
C)the additional number of workers required to produce one more unit of output.
D)the cost of hiring one more worker.

Question

Quizplus · Accepted Answer

Marginal product of labor refers to the additional output or production that is obtained when one more worker is hired, holding all other resources constant. It measures the increase in output due to an increase in labor input. Option A is incorrect because revenue is not the same thing as output or production. Option C is incorrect because it refers to the marginal rate of technical substitution. Option D is incorrect because it refers to the cost of labor, not the marginal product of labor.

The Marginal Product of Labor Is Defined as