In economics, the marginal product of labor (MPL) is the change in output that results from employing an added unit of labor.

The marginal product of labor is important because it’s a key variable in the calculation of the marginal revenue product of labor, which is the change in total revenue, rather than just total output ,when one additional employee is hired and all other factors remain constant.

**Formula to calculate marginal product of labor.**

**Example:**

Company Beta has 3 workers currently and the units produced by them is 99. The HR department decides to add another worker and it was noticed that the units produced went up to 109. Calculate the company’s marginal product of labor.

Therefore, the company’s marginal product of labor is 10.