Fill in the blanks to explain why it can be bad for a company to have too much labor. A company can take advantage of , as theof the first group of workers will increase, but at a certain point it will decline. At this point, will continue to increase, but marginal product will diminish with each additional worker. Eventually there will be too many workers and not enough to keep them busy, inevitably slowing down production and reducing output.

A company can take advantage of THE LAW OF DIMINISHING RETURNS, as the MARGINAL PRODUCT of the first group of workers will increase, but at a certain point it will decline. At this point, TOTAL OUTPUT will continue to increase, but marginal product will diminish with each additional worker. Eventually there will be too many workers and not enough PRODUCTION FACTORS to keep them busy, inevitably slowing down production and reducing output.

Explanation:

I'm not sure about the exact words, but the basic idea should be the same even if you use other words with similar meaning.

This paragraph describes the law of marginal returns. In simple words, if you start with one worker, his/her productivity will generally be low. As you start to add more workers, both total output and productivity increases (due to synergy between workers). But at some point, there are too many workers, and too few resources, e.g. to many chefs inside a kitchen. At that point, since there are too many workers, instead of working well, they will start to complicate each other's performance. This will result in a decline of productivity, even if total output continues to increase.