Marginal Product of Labor
The additional output generated by employing an additional unit of labor.
Suppose a car manufacturing firm has 100,000 employees and produces 100 cars per day. Then the firm hires 1000 more employees and now with 101,000 employees it produces 110 cars per day. All else equal, the marginal product of the additional 1000 employees is 10 cars.
Suppose a car manufacturing firm has 100,000 employees and produces 100 cars per day. Then the firm hires 1000 more employees and now with 101,000 employees it produces 110 cars per day. All else equal, the marginal product of the additional 1000 employees is 10 cars.