Enter the total change in output and change in labor. The calculator will evaluate and display the marginal product of labor.
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Marginal Product of Labor Formula
The following equation is used to calculate the marginal product of labor.
MPL = O / L
- Where MPL is the marginal product of labor
- O is the change in output
- L is the change in labor
Marginal Product of Labor Definition
The marginal product of labor is a ratio of the change in output that occurs with a change in labor. It measures how much output changes with changing labor forces. In ideal situations, an increase in labor would yield an increase in output. This will yield a ratio greater than 1.
Marginal Product of Labor Example
How to calculate a marginal product of labor?
- First, determine the change in output.
Measure the change in output over a certain time period.
- Next, determine the change in input.
Measure the change in input over the same time period.
- Finally, calculate the marginal product of labor.
Using the formula, calculate the marginal product of labor.
A marginal product of labor is the ratio of the change in input to change in output produced by labor forces.