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9 December, 09:45

What is the change of output from adding one more worker called?

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  1. 9 December, 12:46
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    The change in output from adding one more worker is called marginal output. This works the same as marginal cost and marginal revenue. It is a measure of the effect that one more unit would have.

    In theory, if adding one more worker increases output you could continue to add workers. If there comes a time when adding a new worker hurts productivity and output, you would NOT add the person.
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