the formula value of marginal production function of labor
The value of the marginal product of labor (VMPL) is calculated using the following formula:
VMPL = ∆Q / ∆L
where VMPL is the value of the marginal product of labor,
∆Q is the change in output or production level, and
∆L is the change in the quantity of labor employed.
In other words, the VMPL measures the additional output generated by hiring one additional unit of labor.
The formula for the value of the marginal production function of labor is given by:
MPL = ∂Q/∂L
Where:
- MPL represents the marginal product of labor.
- Q represents the quantity of output.
- L represents the quantity of labor.
This formula calculates the additional output that is generated when an additional unit of labor is inputted, holding all other inputs constant.