The interest per year for $5,000 to become $9,110 after 30 years is 2.02% compounded continuously.
This implies that the work would take longer as well, making the product cost more
WE assume that when a firm hires additional workers, the marginal physical product of labor will decrease. Why? Because more people will be added in a certain firm. Thus the resources will be divided to more people now and the money will also be divided to them