The curvature of the production function shows that as employment increases, the productivity of labor

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The curvature of the production function typically reflects the law of diminishing marginal returns, which states that as more units of a variable input (like labor) are added to fixed amounts of other inputs, the additional output produced by each new unit of input will eventually decrease. This means that while the productivity of labor (marginal product) remains positive, it decreases as employment increases.

The Curvature of the Production Function Shows That as Employment