The law of diminishing returns states that,ceteris paribus,the MPP of labor declines as:

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The law of diminishing returns, also known as the principle of diminishing marginal productivity, states that if one factor of production (labor, in this case) is increased while other factors (like land and capital) are held constant, the additional output (marginal product) generated by the additional input will eventually decrease. This principle does not directly relate to changes in wage rates, product prices, or the addition of other factors of production, but specifically to the scenario where more of one input (labor) is used while everything else remains unchanged.

The Law of Diminishing Returns States That,ceteris Paribus,the MPP of Labor