Paper Pushers Inc. hires workers in a competitive labor market. Apart from labor, the company has no other variable inputs. The company's hourly output varies with the number of workers hired, as shown in the table.
$$\begin{array} { | c | c | }
\hline \text { Warkers } & \text { Puges/huur } \
\hline 0 & 0 \
\hline 1 & 40 \
\hline 2 & 75 \
\hline 3 & 105 \
\hline 4 & 125 \
\hline 5 & 140 \
\hline 6 & 150 \
\hline 7 & 155 \
\hline
\end{array}$$
As Paper Pushers Inc. hires more workers each hour, the marginal product of labor ________.

Question

Paper Pushers Inc. hires workers in a competitive labor market. Apart from labor, the company has no other variable inputs. The company's hourly output varies with the number of workers hired, as shown in the table.  
$$\begin{array} { | c | c | } 
\hline \text { Warkers } & \text { Puges/huur } \
\hline 0 & 0 \
\hline 1 & 40 \
\hline 2 & 75 \
\hline 3 & 105 \
\hline 4 & 125 \
\hline 5 & 140 \
\hline 6 & 150 \
\hline 7 & 155 \
\hline
\end{array}$$  
As Paper Pushers Inc. hires more workers each hour, the marginal product of labor ________.

Quizplus · Accepted Answer

The marginal product of labor decreases as more workers are hired, indicated by the diminishing increases in pages/hour with each additional worker.

Paper Pushers Inc As Paper Pushers Inc