Diminishing Marginal Product of labor e As the number of workers increases. the marginal product of labor declines. e As more and more workers are hired each additional worker contributes less to production than the prior one. o The production function becomes flatter as the number of workers rises This property is called diminishing marginal product H arc Inc items and derived items copyright o 2001 by Harcourt, IncHarcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Diminishing Marginal Product of Labor u As the number of workers increases, the marginal product of labor declines. u As more and more workers are hired, each additional worker contributes less to production than the prior one. u The production function becomes flatter as the number of workers rises. This property is called diminishing marginal product