PRESENTATION OUTLINE
Marginal Product of Labor
MARGINAL PRODUCT OF LABOR -
Example -
The first worker to be hired produces four bags an hour, so her marginal product is four bags.
Continued Example -
The second worker raises total output from 4 bags an hour to 10, so her marginal product of labor is 6.
Continued Example -
Looking at the information, we can conclude that the marginal products of labor increases when more is produced.
