Labor productivity(output per unit of labor)can increase if there are improvements in the technology,even though any given production process exhibits diminishing returns to labor. As we move from point A on curve O to B on curve O2 to C on curve O;over time,labor productivity increases. Labor productivity(output per unit of labor)can increase if there are improvements in the technology, even though any given production process exhibits diminishing returns to labor. As we move from point A on curve O1 to B on curve O2 to C on curve O3 over time, labor productivity increases