In Marginal Product Analysis, the additional output generated by employing one more unit of labor is referred to as the __________. This concept is critical for assessing the efficiency of labor relative to its cost, such as wages.

In Marginal Product Analysis, the additional output generated by employing one more unit of labor is called the marginal product of labor. This concept helps businesses understand how much extra product they can create by hiring an additional worker. For example, if a factory produces 100 toys with 5 workers and 102 toys with 6 workers, the marginal product of labor is 2 toys for that additional worker. By analyzing this, companies can determine if the extra output is worth the cost of hiring more employees, like the wages they need to pay. Understanding the marginal product helps businesses make better decisions about their workforce and overall efficiency.