Class participation

I would be more concerned about the marginal productivity of the last worker hired if I was given the
responsibility to hire additional worker.

The marginal product of labor is the change in output (Y) per unit change in labor (L). Average product is
the sum of total output per unit of labor. In marginal productivity, the quantity is highest at some unit of
labor. But in average productivity the quantity is highest at high use of labor than in marginal
productivity.

If the average product is beginning to decline we should not hire new workers. In average productivity of
labour although the unit of labour is increased, the productivity is decreased. So increasing the quantity
of labor means increase in cost rather than increase in revenue. I believe that we should not hire new
employees.

The hiring must depend on the marginal cost for the additional unit of output.