The marginal product of labour is defined as
A) The additional output produced by the last ∆L units of labour hired
B) The amount of output divided by the amount of capital used to produce the output
C) The amount of output produced multiplied by the last ∆L units of labour hired
D) The amount of output divided by the number of workers employed

Question

Quizplus · Accepted Answer

The marginal product of labour is the additional output produced by the last ∆L units of labour hired. It measures the change in output that results from an increase in labour input while keeping all other inputs constant. Choice B is incorrect as it refers to the capital output ratio, and Choice C is incorrect as it does not take into account the number of workers hired but rather multiplies output by the change in labour. Choice D is also incorrect as it divides output by the number of workers, rather than the additional output produced by the last unit of labour hired.

The Marginal Product of Labour Is Defined as