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

Question

Use the following to answer questions :
Figure: The Total Product

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

Quizplus · Accepted Answer

According to the graph, the total product begins to decrease after reaching the point L₂, which means that hiring more labor beyond that point will lead to a decrease in the total product. This is because the marginal product of labor at that point is negative.

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