Decreasing the marginal product of a firm's labor results in less labor being hired, all other things being equal.

Name: Decreasing the marginal product of a firm's labor results in less labor being hired, all other things being equal.
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Question

Quizplus · Accepted Answer

When the marginal product of labor decreases, it means that each additional unit of labor hired contributes less to the total output. Therefore, hiring more labor becomes less profitable for the firm, which leads to hiring fewer laborers.

Decreasing the Marginal Product of a Firm's Labor Results in Less