MousaJarad08 MousaJarad08
  • 20-10-2020
  • Business
contestada

Why does the marginal product of labor decrease with more than four workers in this
example

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jackiejackson53
jackiejackson53 jackiejackson53
  • 20-10-2020

Answer:

As more people are hired, the marginal product of labor decreases because eventually having more and more employees will not make the company more productive. ... If a firm knows the total cost at several levels of output then in order to find M.C. they calculate the additional cost of one more unit.

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