# Marginal Product of Labor

Written by Jerry Ratzlaff on . Posted in Manufacturing Engineering

Marginal product of labor, abbreviated as MPL, is the additional production a company experiences by adding one unit of labor.

## marginal product of labor Formula

 $$\large{ MPL = \frac{ PO }{ IL } }$$

### Where:

$$\large{ MPL }$$ = marginal product of labor

$$\large{ IL }$$ = change in input labor (final labor - initial labor)

$$\large{ PO }$$ = change in production output (final production output - initial production output)