at what output is marginal product of labour the highest
Marginal product of labor During the early stages of production MPL is greater than APL. When the MPL is above the APL the APL will increase. Eventually the MPL reaches it maximum value at the point of diminishing returns. Beyond this point MPL will decrease. However, at the point of diminishing returns the MPL is still above the APL and APL will continue to increase until MPL equals APL. When MPL is below APL, APL will decrease.