In the context of Marginal Product Analysis, how does the Law of Diminishing Returns affect economic efficiency when increasing the quantity of labor while keeping other inputs constant?

The Law of Diminishing Returns states that if you keep adding more of one input, like labor, while keeping other inputs, like machines or land, constant, the extra output you get from each new worker will eventually start to decrease. This happens because there are only so many machines or tools available for workers to use, so after a certain point, adding more workers leads to less additional output. For example, if a factory has ten machines and hires ten workers, each worker can use a machine and produce a lot. However, if the factory then hires ten more workers without adding more machines, the new workers will have to wait for a machine to become available, leading to less overall production. This decrease in efficiency means that while you may have more workers, the value of their contributions diminishes, which can affect the overall productivity of the business.