What can you conclude about a firm in the short run from its marginal product numbers as its output approaches capacity production

Law of Diminishing returns would apply

Explanation:

The Law of Diminishing returns is used to describe the phenomenon where after a certain level of input, the output produced no longer increases at an increasing rate but instead starts increasing at a decreasing rate.

For instance;

Labor                                 Output

  2                                         4

  4                                         8

  6                                         16

  8                                        20

 10                                        22

Notice how at first the output increased by 4 then by 8 but then started increasing by 4 and then by 2. This is the Law of Diminishing Marginal returns and a reality that normally faces a firm in the short run as its output approaches capacity production.