A manager of a small company makes the following statement

Question

A manager of a small company makes the following statement - "We need to keep hiring additional workers up to the point where the marginal productivity of the last worker we hire is at its maximum. This way we can maximize the total productivity of the firm." Critically evaluate this statement.

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The Answer of A manager of a small company makes the following statement - "We need to keep hiring additional workers up to the point where the marginal productivity of the last worker we hire is at its maximum. This way we can maximize the total productivity of the firm." Critically evaluate this statement.