Diminishing marginal product of labor

Assignment Help Business Economics
Reference no: EM131669881

Michelle's business produces ceramic cups using labor, clay, and a kiln. She produces cups using a fixed proportion of labor and clay, but regardless of how many cups she produces, she uses only one kiln. She can manufacture 25 cups a day with one worker and 35 with two workers. Does her production process illustrate decreasing returns to scale or a diminishing marginal product of labor? What is the likely explanation for why output doesn't increase proportionately with the number of workers?

Reference no: EM131669881

Questions Cloud

Microeconomic topic from a popular source : Summarize and critically evaluate an article dealing with a microeconomic topic from a popular source such as Business Week, Fortune, Time, Newsweek.
Why is he important and is there a video online : Who is Joseph Stiglitz, why is he important and is there a video online that can be found?
Reflect on your interview and summarize the life stories : Collect a life story from two older adults (over the age of 65) whom you know well. Reflect on your interview and summarize the life stories you have collected.
Analyze the industry and all the important statistics : You're thinking about starting your own chain of upscale, drive-through espresso stands. You have several ideal sites in mind, and you've analyzed the industry.
Diminishing marginal product of labor : Does her production process illustrate decreasing returns to scale or a diminishing marginal product of labor?
Comprehensive performance management system : The new recruits and the Team Leaders who had formally been Supervisors - the latter wanting to retain some of their old power and reluctant to information
Define future experience as an entrepreneur : Briefly describe an incident in your life in which you failed to achieve a goal you set for yourself. What did you learn from this experience?
Discussion on local small business or franchise : Concept Integration. Pick a local small business or franchise that you visit frequently and discuss whether that business competes on price, speed, innovation.
Analyze the current trends affecting the evolution of hit : Analyze the current trends affecting the evolution of health information technology (HIT). Support your rationale for each of the factors identified.

Reviews

Write a Review

Business Economics Questions & Answers

  Economies of scale or the learning curve

Which do you believe is more important for a firm’s financial efficiency and success: economies of scale or the learning curve? Explain and be specific, giving examples, not discussed in class or the textbook, where possible to support your answer.

  Security banks must reduce its loans and demand deposits

Suppose that Bob withdraws $100 of cash from his checking account at Security Bank and uses it to buy a camera from Jor, who deposits the $100 in his checking account in Serenity Bank. Assuming a reserve ratio of 10 percent and no initial excess rese..

  Elucidate only the effect of recession on the country

elucidate only the effect of recession on the country. Due to floods a country suffered from recession but gradual triggered growth in the manufacturing sector in the following years.

  Full time temporary-part time permanent

Explain In Canada Full-time permanent ---full time temporary----part time permanent---part time temporary---- Why is diagram may only apply to certain people And also considering race and age.

  The equation of exchange indicates

The equation of exchange indicates that:

  Write a simple php code

Write a simple PhP Code that can be used to select all data in the codeigniter framework in the model section?

  Order to obtain the maximum daily revenue

The Physics Club sells E = mc2 T-shirts at the local flea market. Unfortunately, the club's previous administration has been losing money for years, so you decide to do an analysis of the sales. How much should the Physics Club charge for the T-shirt..

  Provide the information is it surprising that the company

Provide the information, is it surprising that the company's revenueincreased when it decreased the average selling price of its phones.

  Kantianism vs. utilitarianism

For this assignment you are revisiting the scenario presented in the Module 02 Course Project assignment (Kantianism vs. Utilitarianism). As you will recall, this is where the company you work for is faced with a decision regarding where to produce t..

  Annual labor cost for new production facility

Miriam is interested in estimating the annual labor cost for a new production facility. The labor cost index value was 124 ten years ago and is 188 today. Annual labor costs for a simlar facility were $503,030 ten years ago. What is the estimated lab..

  Statements is true about organizational culture

_____ communication involves the exchange of information among colleagues and peers on the same organizational level, such as across or within departments. Which of the following statements is true about organizational culture? Banks having separate ..

  Economy recover from a recession are known

Changes in tax laws and deliberate government purchases that are made to help the economy recover from a recession are known as ____________.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd