If, after hiring the 6th worker, a firm's output falls, then the marginal product of the 6th worker is negative.

Name: If, after hiring the 6th worker, a firm's output falls, then the marginal product of the 6th worker is negative.
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Question

Quizplus · Accepted Answer

The marginal product of a worker is the additional output produced by hiring one more worker. If the firm's total output decreases after hiring the 6th worker, it means the 6th worker's contribution is negative, thus a negative marginal product.

If, After Hiring the 6th Worker, a Firm's Output Falls