The worker’s marginal product of labor is 2 cupcakes.
The marginal product of labor, also known as MPL, is the increase in total production that a company experiences when one additional unit of labor (often one additional employee) is added while all other factors of production stay constant. To put it another way, the MPL is the extra output a business experiences after adding a new employee.
When recruiting new employees, the marginal product of labor (MPL) is always positive, but it seldom exhibits continuous returns. As the workforce grows, the MPL always slows, forcing workers to share resources like machinery throughout production.
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