can anyone explain to me about marginal product?
and lets say this person owns a constant amount of farmland and everytime he adds the amount of labour, the production increases. but after sometime the production decreases as he adds more labour and his marginal product becomes negative
why does production decreases after a certain increase in labour...shouldn't the production increase as labour increases?
or does this have sthg to do with the constant amount of land used?
please help me....tq..=)
2007-02-23 12:02:12 · 4 answers · asked by Esther L 1 in Social Science ➔ Economics
like if you have too many people working on the field, they begin trampling on the crops, or stealing, or distracting each other with conversations.
it still sounds kinda implausible - i mean you can always lock up unsued workers. ... This example would make more sence if we looked at average product (i.e. output per worker), which definetely goes down as you increase labor. But the top of average product is reached when average product is equal to marginal one, not when marginal hits zero.
Moreover, most examples still have non-decreasing production function, so MC never goes negative
2007-02-23 12:08:11 · answer #1 · answered by Anonymous · 0⤊ 0⤋
marginal product is the "extra" product from adding one more input in your production.
AS you increase more and more input of production to your industry/operations, they will result in an increase in output, but the difference of marginal product is the productivity of an individual. Like the example above.... at McDonalds, 5 people can do the job, but if you add 150 people in a store, some people will not be doing anything(individually), hence the MP(marginal product) is negative
2007-02-23 23:51:45 · answer #2 · answered by sunsetconmartini 2 · 0⤊ 0⤋
Think of a McDonald's. If you have a person who flips the burgers, a person who puts on the ketchup, and a person to put the buns on, etc. You are going to be able to make more hamburgers with each employee you add. Now imagine that you add 150 employees. You are actually going to be less productive because there are just too many employees, they will bump into each other, and you don't have enough cooking utensils for them all.
2007-02-23 20:08:36 · answer #3 · answered by chaseunchase 4 · 0⤊ 0⤋
...sounds to me like he needs crop rotation... the land is burned out... plant something easy to harvest... watermellons....ummm,. yeah...watermellons !!!!
2007-02-27 19:25:38 · answer #4 · answered by Anonymous · 0⤊ 0⤋