The marginal product of labor measures how much an additional unit of labor affects which of the following?

• A. Total output produced by the firm
• B. The wage rate paid to workers
• C. The average cost of production
• D. The total cost of all inputs

Answer: (A)

Verified step by step guidance

1. Understand the definition of the marginal product of labor (MPL): it measures the additional output produced by employing one more unit of labor, holding other inputs constant.
2. Recall that total output produced by the firm is the total quantity of goods or services produced, which changes when labor input changes.
3. Recognize that MPL specifically focuses on the change in total output, not on costs or wages directly.
4. Note that the wage rate paid to workers is a price factor, not a measure of output change, so MPL does not measure wages.
5. Conclude that MPL measures the change in total output produced by the firm when an additional unit of labor is employed.