The formula to calculate the Marginal Product of Labor (MPL) is:
\[ \text{MPL} = \frac{O}{L} \]
Where:
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, resulting in a ratio greater than 1.
Let's assume the following values:
Using the formula to calculate the Marginal Product of Labor:
\[ \text{MPL} = \frac{500}{50} = 10 \text{ units per worker} \]
The Marginal Product of Labor is 10 units per worker.