As more labor is hired,moving along the production function,diminishing returns occur because

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Diminishing returns occur because there are fixed quantities of other resources. As more labor is hired, it becomes increasingly difficult to increase output without increasing the amount of other resources available, such as capital or technology. Eventually, the marginal product of labor will decrease as labor becomes less and less productive without accompanying increases in other resources.

As More Labor Is Hired,moving Along the Production Function,diminishing Returns