Question

Explain the process if we continue to hire workers our total product produced will always increase but at some point our marginal product produced begins to decrease?

Answer 1

The Law of Diminishing Marginal Product states that as we continue to hire more workers, the total product produced will increase, but the marginal product will eventually start to decrease.

Step-by-step explanation:

Marginal product refers to the additional output generated by hiring one more worker. Initially, as we add workers, the marginal product increases. However, at some point, the marginal product begins to decrease. This is known as the Law of Diminishing Marginal Product, which states that when we continue to hire workers, the total product produced will always increase, but the marginal product will eventually start to diminish.