As more workers are hired, the marginal physical product of labor eventually declines because

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Quizplus · Accepted Answer

The marginal physical product of labor declines as more workers are hired primarily because the amount of capital (tools, equipment, space, etc.) each worker has to work with generally decreases, leading to lower productivity per additional worker. This is a reflection of the law of diminishing returns, which states that adding more of one factor of production, while holding others constant, will at some point yield lower per-unit returns.

As More Workers Are Hired, the Marginal Physical Product of Labor