Marginal product of labor: The marginal product of labor measures the additional output produced when one additional unit of labor is employed, holding other inputs constant.
Derived demand: Derived demand refers to the demand for factors of production (such as labor) that comes from the final consumer's demand for goods or services.
Diminishing marginal returns: Diminishing marginal returns occur when adding more units of a variable input (like labor) leads to smaller increases in output.