The increase in the amount of output produced that results when we add one more unit of labor, but hold all other inputs constant is called
A) the marginal product of labor
B) decreasing returns to factor
C) a long-run production function

Question

Quizplus · Accepted Answer

The marginal product of labor measures the additional output that is produced by adding one more unit of labor while keeping all other inputs constant. It is a short-run concept that helps firms determine the optimal level of employment for maximizing profits. B) decreasing returns to factor is a situation where increasing the use of one input while holding all other inputs constant results in diminishing marginal returns. C) A long-run production function refers to a situation where a firm can vary all its inputs, including capital, labor, and technology, to produce different levels of output.

The Increase in the Amount of Output Produced That Results