What is the concept of marginal utility of labor?

Economics Marginal Utility Questions



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What is the concept of marginal utility of labor?

The concept of marginal utility of labor refers to the additional satisfaction or benefit that an individual derives from each additional unit of labor or work performed. It measures the change in total utility or satisfaction resulting from an increase in the amount of labor input. The marginal utility of labor helps in determining the optimal level of labor to be employed by individuals or firms, as it indicates the point at which the additional utility gained from labor equals the cost or effort required to perform the work.