The Downward-Sloping Average Product of Labor Curve
In an agricultural economy with a fixed amount of land, there is an inverse relationship between the number of workers and their average output. When the workforce is small, each farmer has access to more resources, resulting in a high average product. For instance, a small group of 200 farmers might produce 855 kg of grain each. However, as more farmers are added, the average product per farmer declines. This relationship is graphically represented by a downward-sloping curve, illustrating the principle of diminishing average product of labor.
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Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
Ch.1 Prosperity, inequality, and planetary limits - The Economy 2.0 Microeconomics @ CORE Econ
Ch.2 Technology and incentives - The Economy 2.0 Microeconomics @ CORE Econ
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Learn After
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A farm with a fixed amount of land employs 20 workers and produces a total of 5,000 kg of grain. The farm manager hires one additional worker, and the total output increases to 5,208 kg. Based on this information, what is the effect of hiring the 21st worker on the average product of labor?
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Consider a farm with a fixed plot of land that produces grain. The table below shows the total output for different numbers of workers.
Number of Workers Total Output (kg) 1 100 2 220 3 360 4 440 5 500 At which point does the principle of diminishing average product of labor first become evident?
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Number of Workers Total Output (kg) 1 100 2 220 3 360 4 440 5 500 At which point does the principle of diminishing average product of labor first become evident?
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