The marginal product of labor is defined as
A)the change in total revenue that results when an additional unit of a labor is hired.
B)the additional labor required to produce one more unit of output.
C)the additional labor cost of producing one more unit of output.
D)the change in output that a firm produces as a result of hiring one more worker.

Question

Quizplus · Accepted Answer

The marginal product of labor is the additional output a firm produces as a result of hiring one more worker. It is a measure of the change in total output produced by a firm when one additional unit of labor is added, holding all other inputs constant. Therefore, option D is the correct choice. Option A is incorrect as it deals with total revenue, not marginal productivity. Option B is incorrect as it refers to the marginal rate of technical substitution, not marginal productivity. Option C is incorrect as it deals with labor costs, not productivity.

The Marginal Product of Labor Is Defined as