We assume that when a firm hires additional workers, the marginal physical product of labor will:

Question

1. decrease because each worker now has less capital and other resources to work with.
2. decrease because the new workers are likely to be less able than the previously hired ones.
3. increase because more workers can always get more work done.
4. increase because large firms are more efficient.

I think its Number 1 because since you have more workers there is less space, but unsure.