Use the following to answer question:
-(Figure: The Total Product) Use Figure: The Total Product.If the firm hires more than L₂ labor,the total product will _____ because the marginal product of labor is _____.

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Use the following to answer question:

-(Figure: The Total Product) Use Figure: The Total Product.If the firm hires more than L₂ labor,the total product will _____ because the marginal product of labor is _____.

Quizplus · Accepted Answer

According to the graph, after L₂, the total product starts to decrease, indicating that the firm is experiencing diminishing marginal returns. As a result, the marginal product of labor must be negative beyond L₂.

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