In the context of labor supply, what does the concept of marginal returns refer to?

Marginal returns in labor supply refers to the additional output or value produced when one more worker is added to a team or workplace. When a company hires more workers, each new worker contributes to the production process, but the extra benefit gained from each worker can change. For example, if a factory hires one more worker and they produce 10 more toys, the marginal return is 10 toys. However, if the factory is already crowded, the next worker might only add 5 toys because there isn't enough space or equipment for everyone to work efficiently. This concept helps businesses understand how many workers to hire and when hiring more might not be as effective.