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Marginal product eventually diminishes because the cost of doing business increases with production. The company would need to make a change in the organization so that they can shift their production possibilities.
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What is the difference between the marginal product of labor and the marginal revenue product of labor?
moarginal product of labor
How does the marginal product of labor change as more pepople are hird?
As more people are hired, the marginal product of labor decreases because eventually having more and more employees will not make the company more productive.
The marginal product of labor can be defined as?
change in output/change in labor.
Formula for marginal product of labor?
Change in Quantity/ Change in Units of Labor.
Why is the marginal product of labor likely to increase initially in the short run as more of the variable output is hired?
The marginal product of labor is likely to increase initially because when there are more workers, each is able to specialize on an aspect of the production process in which he or she is particularly skilled. For example, think of the typical fast food restaurant. If there is only one worker, he will need to prepare the burgers, fries, and sodas, as well as take the orders. Only so many customers can be served in an hour. With two or three workers, each is able to specialize and the marginal product (number of customers served per hour) is likely to increase as we move from one to two to three workers. Eventually, there will be enough workers and there will be no more gains from specialization. At this point, the marginal product will diminish.
How does the marginal product of labor change as more people are hired?
As more people are hired, the marginal product of labor decreases because eventually having more and more employees will not make the company more productive.
What is the difference between the marginal product of labor and the marginal revenue product of labor?
moarginal product of labor
How does the marginal product of labor change as more pepople are hird?
As more people are hired, the marginal product of labor decreases because eventually having more and more employees will not make the company more productive.
The marginal product of labor can be defined as?
change in output/change in labor.
Formula for marginal product of labor?
Change in Quantity/ Change in Units of Labor.
Relationship between Tota Product Marginal Product and Average Product?
Average Product = (Total Product) / (Labor) Marginal Product(2) = (Total Product)(2) - (Total Product)(1)
Why is the marginal product of labor likely to increase initially in the short run as more of the variable output is hired?
The marginal product of labor is likely to increase initially because when there are more workers, each is able to specialize on an aspect of the production process in which he or she is particularly skilled. For example, think of the typical fast food restaurant. If there is only one worker, he will need to prepare the burgers, fries, and sodas, as well as take the orders. Only so many customers can be served in an hour. With two or three workers, each is able to specialize and the marginal product (number of customers served per hour) is likely to increase as we move from one to two to three workers. Eventually, there will be enough workers and there will be no more gains from specialization. At this point, the marginal product will diminish.
When a firm's only variable input is labor then what does the slope of the production function measures?
marginal product of labor
What is labor cost control procedure?
A procedure through which it is considered by keeping in view economics approach that the cost of labor does not increase its marginal product cost i.e. labor cost less than marginal cost.
What is the change in output from adding one more worker called?
marginal product of labor
What is the Value of marginal product of labor?
Marginal product of labour is no of quantity u can get by increasing labour by one quantity i.e in simple term suppose u have N labour initially and they r manufacturing P product and then u r hiring one more labour for your work keeping all other factore constant so now your production is P' so P'-P is called marginal product of labour and if u r multiplying it with price of one product u will get value of marginal product of labor.
If the marginal product of labor starts being negative explain what must be done to lead to increasing returns?
A businesses can add more machinery to increase their marginal product of labor. With more machinery, employees will work the same number of hours, but produce more products.
