Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The additional output produced by one more unit of labor
B
The total output produced by all units of labor
C
The cost of hiring one more unit of labor
D
The average output produced by all units of labor
Understanding the Answer
Let's break down why this is correct
Answer
The marginal product of labor (MPL) is a key concept in labor economics that shows how much extra output a company gets when it hires one more worker. It helps businesses understand the value of adding more employees. For example, if a factory produces 100 toys with 5 workers and then produces 110 toys with 6 workers, the MPL of the sixth worker is 10 toys. This information is important because it helps companies decide whether hiring more workers will be worth the cost. If the extra output is greater than the wage paid to the new worker, it makes sense to hire them.
Detailed Explanation
The marginal product of labor shows how much extra stuff we make when we add one more worker. Other options are incorrect because This option confuses total output with the extra output from one worker; This choice talks about the cost of hiring, not the output.
Key Concepts
economic theory of labor
Topic
Marginal Product and Labor Costs
Difficulty
easy level question
Cognitive Level
understand
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