[guided]The inductive step reduces the $n$-generator case to the $(n-1)$-generator case by peeling off the last generator. Setting $M = K(\alpha_1, \ldots, \alpha_{n-1})$, the full extension becomes a simple extension $M(\alpha_n)/M$ stacked on top of $M/K$.
A natural question arises: we know $\alpha_n$ is algebraic over $K$, but can we use the [Structure of Simple Algebraic Extensions](/theorems/1251) for $M(\alpha_n)/M$? That theorem requires $\alpha_n$ to be algebraic over $M$, not over $K$. The resolution is straightforward but important to state: any polynomial $f \in K[t]$ that witnesses $f(\alpha_n) = 0$ is also a polynomial in $M[t]$ (since $K \subset M$), so algebraicity over $K$ implies algebraicity over any extension of $K$. The converse is false in general — an element can be algebraic over $M$ without being algebraic over $K$ — but we do not need the converse here.
With $\alpha_n$ algebraic over $M$, the [Structure of Simple Algebraic Extensions](/theorems/1251) gives $[M(\alpha_n) : M] = \deg P_{\alpha_n, M} < \infty$. We also note that $\deg P_{\alpha_n, M} \le \deg P_{\alpha_n, K}$: the minimal polynomial over $K$ belongs to $M[t]$ and vanishes at $\alpha_n$, so $P_{\alpha_n, M}$ divides it in $M[t]$, forcing the degree inequality. (The degree can strictly decrease: for instance, $\sqrt{2}$ has minimal polynomial $t^2 - 2$ over $\mathbb{Q}$, but minimal polynomial $t - \sqrt{2}$ over $\mathbb{Q}(\sqrt{2})$.)
The identity $M(\alpha_n) = K(\alpha_1, \ldots, \alpha_n)$ holds because $K(\alpha_1, \ldots, \alpha_n)$ is defined as the smallest subfield of the ambient field containing $K$ and all of $\alpha_1, \ldots, \alpha_n$. Since $M = K(\alpha_1, \ldots, \alpha_{n-1})$ already contains $K, \alpha_1, \ldots, \alpha_{n-1}$, adjoining $\alpha_n$ to $M$ yields exactly $K(\alpha_1, \ldots, \alpha_n)$.
Finally, the [Tower Law](/theorems/1248) applies to the tower $K \subset M \subset M(\alpha_n)$ because both $[M : K]$ and $[M(\alpha_n) : M]$ are finite. The product of two finite numbers is finite, completing the induction.
The final clause — that the finite extension is algebraic — follows from the [Finite Implies Algebraic](/theorems/1249) theorem: every element of a finite extension satisfies a nonzero polynomial over the base field, because the powers $1, \alpha, \alpha^2, \ldots$ must eventually be linearly dependent in a finite-dimensional space.[/guided]