Assume that a firm is operating in the short run and all resources are fixed except for labor.The total product curve for this firm will increase at a decreasing rate because:

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In the short run, with fixed resources other than labor, the marginal product of labor is expected to decline as more labor is employed because of the law of diminishing returns. As a result, the total product curve will initially increase at an increasing rate, then at a decreasing rate, and eventually at a lesser or negative rate.

Assume That a Firm Is Operating in the Short Run