The definition of margin product is the additional output that results when one more units of input, such as labor, is added.

The marginal product of labor is important because it’s a key variable in calculating the marginal revenue product of labor.

**Formula to calculate marginal product.**

- Q
_{n }is the Total Production at time n - Q
_{n-1 }is the Total Production at time n-1 - L
_{n }is the Units at time n - L
_{n-1 }is the Units at time n-1

**Example**

Suppose the first employee of a company makes 10 articles a day. Determine the marginal product.

Therefore, the marginal product is 10.