What is the formula marginal product of labor
The formula for the marginal product of labor (MPL) is:
MPL = ΔQ / ΔL
where:
- MPL is the marginal product of labor
- ΔQ is the change in output or quantity produced
- ΔL is the change in labor input or number of workers.
The formula for marginal product of labor is calculated by taking the difference between the total product of labor (TP) when one additional unit of labor is employed and the total product of labor when one fewer unit of labor is employed. Mathematically, it can be expressed as:
Marginal Product of Labor (MPL) = TP(n) - TP(n-1)
where:
- MPL represents the marginal product of labor
- n represents the current number of units of labor employed
- TP(n) represents the total product of labor when n units of labor are employed
- TP(n-1) represents the total product of labor when n-1 units of labor are employed.