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Economics 101: Marginal Product Of Labor | SterlingTerrell.net

Economics 101: Marginal Product Of Labor


What is the marginal product of labor?

The Marginal Product Of Labor is the change in output from adding one additional unit of labor.

It is the answer to the question:

If a factory produces 50 units per day with 10 employees, how many units per day can the factory produce with 11 employees?

Remember, at a certain point, the marginal output will diminish.