Question

6. The change in output from adding one more worker is the (1 point)

Omarginal product of labor.
O increasing marginal returns.
O diminishing marginal returns.
O negative marginal returns.

Answer 1

negative marginal returns

Answer 2

The change in output from adding one more worker is the A) marginal product of labour.

Step-by-step explanation:

The marginal product of labor (MPL) means measuring the actual output following the hiring of labor while other factors that may affect productivity remain the same or constant. The marginal product of labor help firms to determine whether the new employee is an asset or a liability to the company.

If the MPL is lower than the cost of the employee, it means the employee is a liability. The production demand will determine how much labor requires. It also requires being cautious of the MPL and the employees' salaries. A good business deal requires MPL to be higher than the salaries.