The marginal product of labor is the
A)cost of one worker
B)average output per worker
C)change in revenue from selling one more unit of output
D)change in revenue from using one more unit of labor
E)change in output from using one more unit of labor

Question

Quizplus · Accepted Answer

The marginal product of labor (MPL) is the change in output that results from using one more unit of labor, while holding all other inputs constant. Therefore, the best choice is E. The marginal product of labor is not related to the cost of one worker (choice A), the average output per worker (choice B), or the change in revenue from selling one more unit of output (choice C). While revenue is related to output, it is not necessarily a measure of the marginal product of labor. Additionally, the marginal product of labor is not directly related to revenue (choice D).

The Marginal Product of Labor Is the