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Zorluk: OrtaShort-Run Production and Law of Diminishing Returns

The table below displays the output schedule for a small bakery operating in the short run with a fixed oven capacity and variable units of labor:

Units of Labor (LL)Total Product (TPTP) in loaves
115
235
360
480
595

With the addition of which unit of labor does the Law of Diminishing Marginal Returns begin to operate?

  1. A
    2nd unit of labor
  2. B
    3rd unit of labor
  3. 4th unit of laborCevap
  4. D
    5th unit of labor

Cevap

The Law of Diminishing Marginal Returns begins to operate with the addition of the 4th unit of labor.
The Law of Diminishing Marginal Returns states that as equal units of a variable factor are added to fixed factors of production, the marginal product (MPMP) of the variable factor will eventually diminish. By calculating MP=ΔTP/ΔLMP = \Delta TP / \Delta L:
- MPMP of 1st unit = 15
- MPMP of 2nd unit = 20
- MPMP of 3rd unit = 25 (Peak MPMP)
- MPMP of 4th unit = 20 (First decline in MPMP)
- MPMP of 5th unit = 15

Since MPMP reaches its peak at the 3rd worker and declines for the 4th worker, diminishing returns set in with the 4th unit of labor.

Adım Adım Çözüm

1
Calculate Marginal Product (MPMP) for each additional unit of labor
MP1=15−0=15MP_1 = 15 - 0 = 15, MP2=35−15=20MP_2 = 35 - 15 = 20, MP3=60−35=25MP_3 = 60 - 35 = 25, MP4=80−60=20MP_4 = 80 - 60 = 20, MP5=95−80=15MP_5 = 95 - 80 = 15.
Marginal product measures the addition to total product resulting from employing one additional unit of a variable input.
2
Identify the trend in Marginal Product (MPMP)
MPMP increases from 15 to 20 to a peak of 25 at the 3rd unit of labor, then drops to 20 at the 4th unit of labor.
The Law of Diminishing Returns states that as successive units of a variable input are added to a fixed input, marginal product will eventually decline.
3
Determine the exact unit of variable input where MPMP first decreases
The 4th unit of labor produces an MPMP of 20, which is lower than the previous MPMP of 25.
Diminishing marginal returns set in at the specific unit of input where MPMP starts to decline after reaching its maximum value.

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Short-Run Production and Law of Diminishing Returns
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Short-Run Production and Law of Diminishing Returns

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