-(Exhibit: Total Product) After hiring L₂ units of labor and producing at point B on the total product curve, hiring more units of labor would result in which of the following statements being true?

Question

Quizplus · Accepted Answer

After point B on the total product curve, the curve starts to decline, indicating that additional units of labor lead to a decrease in total output. This means the marginal product of labor, which is the change in total output resulting from hiring one more unit of labor, becomes negative.

-(Exhibit: Total Product) After Hiring L2 Units of Labor and Producing

-(Exhibit: Total Product) After Hiring L₂ Units of Labor and Producing