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

Question

Quizplus · Accepted Answer

The marginal product of labour is defined as the change in output that a firm produces as a result of hiring one more worker. It measures the additional output that is gained when one more unit of labour is employed, while all other inputs are held constant. Choices A, B, and C do not accurately define the concept of marginal product of labour.

How Is the Marginal Product of Labour Defined