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Figure 6.2 Deriving the Marginal Product of Labor
(a) The marginal product of labor is the slope of the production function. As the quantity of labor increases, the marginal product decreases, from MPL = 1 when L = 1 to MPL = 0.45 when L = 5 and the slope flattens.(b) Using the production function in panel a, we can derive the marginal-product-of-labor curve. The downward slope of the curve shows the diminishing marginal returns to labor.