The marginal product of labor typically declines as the number of workers increases.

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Quizplus · Accepted Answer

This relationship is known as the law of diminishing marginal returns, which suggests that as additional units of a variable input (in this case, labor) are added, the marginal product of that input will eventually decrease, assuming that all other inputs are held constant. This is due to factors such as limited space, diminishing returns to specialization, and coordination problems that arise as the number of workers increases.

The Marginal Product of Labor Typically Declines as the Number