The marginal revenue product of labor declines as the number of workers increases because

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The law of diminishing marginal product states that as more units of a variable input (in this case, labor) are added to a fixed input (e.g. a factory), the marginal product of the variable input eventually decreases. This means that each additional worker hired contributes less to total output than the previous worker, and therefore the marginal revenue product of labor also declines.

The Marginal Revenue Product of Labor Declines as the Number