As a firm hires more and more workers,________.

Name: As a firm hires more and more workers,________.
Brand: Quizplus
Rating: 4.8 (52 reviews)

Question

Quizplus · Accepted Answer

As a firm hires more and more workers, the value of the marginal product of the additional workers eventually decreases. This happens because the fixed inputs, such as equipment and workspace, cannot be increased at the same rate as the number of workers. As a result, each additional worker contributes less and less to the output of the firm, eventually leading to a decrease in the marginal product.

As a Firm Hires More and More Workers,________