Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The additional output produced by adding one more unit of labor
B
The total output produced by all units of labor
C
The decrease in output when one unit of labor is removed
D
The fixed output regardless of labor changes
Understanding the Answer
Let's break down why this is correct
Answer
The marginal product of labor refers to the additional output or goods produced when one more worker is added to the production process, while keeping all other factors constant. This concept helps businesses decide if hiring more workers is worth it. For example, if a bakery currently employs five bakers and decides to hire a sixth, the marginal product of that sixth baker is the extra number of loaves of bread they can produce in a day. If the sixth baker increases production from 100 to 110 loaves, the marginal product of labor is 10 loaves. Understanding this helps companies maximize their efficiency and make smart hiring choices based on how much extra they can produce.
Detailed Explanation
The marginal product of labor is about how much extra stuff we can make when we add one more worker. Other options are incorrect because This answer confuses total output with the extra output from one worker; This option talks about losing output instead of gaining it.
Key Concepts
Marginal product
Topic
Short-Run Production Decisions
Difficulty
easy level question
Cognitive Level
understand
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