As more workers are hired, the marginal physical product of labor declines due to the law of diminishing marginal returns.

Name: As more workers are hired, the marginal physical product of labor declines due to the law of diminishing marginal returns.
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The law of diminishing marginal returns states that as more units of a variable input (like labor) are added to a fixed input (like capital), the additional output produced by each additional unit of labor eventually decreases.

As More Workers Are Hired, the Marginal Physical Product of Labor