In short-run production with two inputs where land is a fixed input labor is a variable input, once the marginal products of labors start to diminish, firms in perfectly competitive markets must stop hiring additional labors.

Microeconomics A Contemporary Intro
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ISBN:9781285635101
Author:MCEACHERN
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Chapter7: Production And Cost In The Firm
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Explain in details whether the underlined part of statement is true or false.
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 In short-run production with two inputs where land is a fixed input labor is a variable input, once the marginal products of labors start to diminish, firms in perfectly competitive markets must stop hiring additional labors.

 

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