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Marginal Revenue Product of Labour - Explained (Labour Markets)

A Level, IB
AQA, Edexcel, OCR, IB, Eduqas, WJEC

Last updated 21 Mar 2021

Marginal revenue product of labour (MRPL) is the extra revenue generated when an additional worker is employed.

Marginal Revenue Product of Labour

The formula for MRPL = marginal product of labour x marginal revenue.

The demand curve for labour tells us how many workers a business will employ at a given wage rate in a given time period

In the theory of competitive labour markets, the demand curve for labour comes from the estimated marginal revenue product of labour (MRPL)


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