The marginal product of labor is equal to the:
A. incremental cost associated with a one unit increase in labor
B. incremental profit associated with a one unit increase in labor
C. increase in labor necessary to generate a one unit increase in output
D. increase in output obtained from a one unit increase in labor
Economically, marginal product determines the level of productivity of the input factors. If the marginal product of an input factor is greater, then it implies that an increase in usage of one unit of that factor increases that firm's output level and vice versa.
Answer and Explanation: 1
The correct option is (D.) increase in output obtained from one unit in labor
The marginal product of labor is denoted as:
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fromChapter 12 / Lesson 6
The amount of output produced per work interval determines worker productivity. Learn how to define worker productivity, explore the factors that impact productivity, find out why organizations care about it, and take a look at some statistics from the U.S. Bureau of Labor and Statistics.