The marginal product of labor is equal to the a. incremental cost associated with a one unit increase in labor. b. incremental profit associated with a one unit increase in labor. c. increase in labor necessary to generate a one unit increase in output.

Question

Hunter Sandoval

Business

6 January, 17:24

The marginal product of labor is equal to the a. incremental cost associated with a one unit increase in labor. b. incremental profit associated with a one unit increase in labor. c. increase in labor necessary to generate a one unit increase in output.

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Jamison Rose · Answer 1

Answer: increase in labor necessary to generate a one unit increase in output (C)

Explanation:

The marginal product of labor is the change in output which results from the additional employment of a unit of labor. To calculate the marginal product of labor, one has to divide the change in total product by the change in labor.

The marginal product of labor is positive at first during the early hiring of workers as the increase in labor leads to increase in production but later, the marginal product of labor is negative, when hiring an additional employee would disrupt the firm and cause a reduction in production.