The marginal physical product of labor is defined as
A)a firm's total output divided by total labor input.
B)the extra output produced by employing one more unit of labor while allowing other inputs to vary.
C)the extra output produced by employing one more unit of labor while holding other inputs constant.
D)the extra output produced by employing one more unit of capital while holding labor input constant.

Question

Quizplus · Accepted Answer

The marginal physical product of labor (MPPL) is the additional output that results from an increase in labor input, holding all other inputs constant. It's the extra output produced by employing one more unit of labor while holding other inputs constant.

The Marginal Physical Product of Labor Is Defined as