It's a year ago you asked, but by definition, the marginal product of labour is the first order derivative of the production function with respect to labour. You can interpret this as 'how much more do I produce after adding an additional unit of labour?'. In competitive markets, an agent will keep demanding labour as long as that extra unit of labour demanded results in a profit. Therefore, labour is demanded to the point where (thus in equilibrium) MPL=w.
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All the 4 Solow model videos Incredibly Explained ! 👏👏👏👏
Hope , didn't miss out on any other video.
On this channels econ debates. I would like to see you debate the flat tax rate.
Agreed
Did he do a vid about this already?
I'm a little confused. Where did the equation for marginal product of labour come from?
It's a year ago you asked, but by definition, the marginal product of labour is the first order derivative of the production function with respect to labour. You can interpret this as 'how much more do I produce after adding an additional unit of labour?'. In competitive markets, an agent will keep demanding labour as long as that extra unit of labour demanded results in a profit. Therefore, labour is demanded to the point where (thus in equilibrium) MPL=w.
Just feel like meeting the Profs and study economics Once Again ! Did post grad from Delhi Univ but ...