Glossary · Micro · Production and costs

Marginal product of labor (MPL)

The extra output from hiring one more worker, holding other inputs fixed. It rises at first as workers specialise, then falls as the fixed equipment gets crowded.

Also called: MPL, marginal product

Taught in: Marginal Product of Labor

Related terms

Average product of labor (APL)Law of diminishing marginal returnsMarginal revenue product (MRP)

More from production and costs

Average fixed cost (AFC)Average total cost (ATC)Average variable cost (AVC)Cobb-Douglas production functionEconomies and diseconomies of scaleFixed cost (FC)Isoquant

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