DEFINITION OF LABOR
LABOR IS A MEASURE OF THE WORK DONE BY HUMAN BEINGS TO
CREATE A MANUFACTURED OUTPUT. PRODUCERS DEMAND LABOR
BECAUSE IT AIDS IN PRODUCING OUTPUT WHICH CAN THEN BE SOLD. IN
PRODUCTION, A WORKER WILL ONLY BE HIRED WHEN THE MARGINAL
REVENUE S/HE BRINGS IN EXCEEDS OR EQUALS THE MARGINAL COST OF
HIRING THAT WORKER. THE COST OF ONE WORKER IS THE WAGE.
THE VALUE OF LABOR VARIES BASED ON THE SKILLS AND TALENTS
THAT THE INDIVIDUAL WORKER BRINGS TO THAT JOB. IF THE JOB
INVOLVES DESIGNING AND BUILDING A COMPUTER, AN ENGINEER'S
LABOR IS MORE VALUABLE THAN A TAILOR. IF THE JOB REQUIRES THE
MANUFACTURE OF A SUIT, AN EMPLOYER WOULD PREFER THE TAILOR.
OTHER ELEMENTS THAT INFLUENCE THE PERCEPTION OF THE VALUE OF
A SPECIFIC TYPE OF LABOR IN PRODUCTION INCLUDE THE AMOUNT OF
TRAINING NECESSARY TO EXECUTE THE TASK AND THE BARRIERS TO
CONDUCTING THAT TYPE OF WORK.
LABOR IS A MEASURE OF THE WORK DONE BY HUMAN BEINGS TO
CREATE A MANUFACTURED OUTPUT. PRODUCERS DEMAND LABOR
BECAUSE IT AIDS IN PRODUCING OUTPUT WHICH CAN THEN BE SOLD. IN
PRODUCTION, A WORKER WILL ONLY BE HIRED WHEN THE MARGINAL
REVENUE S/HE BRINGS IN EXCEEDS OR EQUALS THE MARGINAL COST OF
HIRING THAT WORKER. THE COST OF ONE WORKER IS THE WAGE.
THE VALUE OF LABOR VARIES BASED ON THE SKILLS AND TALENTS
THAT THE INDIVIDUAL WORKER BRINGS TO THAT JOB. IF THE JOB
INVOLVES DESIGNING AND BUILDING A COMPUTER, AN ENGINEER'S
LABOR IS MORE VALUABLE THAN A TAILOR. IF THE JOB REQUIRES THE
MANUFACTURE OF A SUIT, AN EMPLOYER WOULD PREFER THE TAILOR.
OTHER ELEMENTS THAT INFLUENCE THE PERCEPTION OF THE VALUE OF
A SPECIFIC TYPE OF LABOR IN PRODUCTION INCLUDE THE AMOUNT OF
TRAINING NECESSARY TO EXECUTE THE TASK AND THE BARRIERS TO
CONDUCTING THAT TYPE OF WORK.
