theme 3 : law of diminishing returns
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Flashcardsin the short run at least one factor of production is …
fixed
the number of workers (labour) is what
a variable cost
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in the short run at least one factor of production is …
fixed
the number of workers (labour) is what
a variable cost
initially having more workers your output per worker is likely to
rise
this is because if you had a factory designed for 50 workers for example, it would be unproductive to only employ one worker
law of diminishing returns explanation
the more workers there are, output reduces
this is because workers might get in the way of each other
for example if you had too many workers, you might not have enough tools for each of them which therefore decreases productivity