Question

4. Explain why marginal physical product would diminish as

a. More secretaries are hired in an office

b. More professors are hired in the economics department

c. More construction workers are hired to build a school

d. More officers are hired to the police department

e. More are hired to work in the kitchen

Answer 1

Answer : a) When on fixed production more workers are hired then the marginal physical productivity decrease. When an office hire more secretaries then the marginal physical productivity decrease. Because here office is one and secretaries are more. This means that the capital is fixed but workers are more.

b) Similarly, when the economics department hire more professors then the marginal physical productivity decrease. Because here capital is economics department which is fixed and professors are workers which is more. When on fixed capital more workers are hired then the marginal physical product decrease.

c) When on fixed production more workers are hired then the marginal physical productivity decrease. Here for option c more construction workers are employed to build only one school. Here building one school is fixed. Now if to build this one school more construction workers are hired then the marginal physical productivity decrease.

d) When a police department hire more workers then each worker's physical productivity level decrease. Because here the police department is a fixed capital and officers are workers. When on fixed production more workers are hired then the marginal physical productivity decrease.

e) When more workers are employed in a kitchen then each worker's physical productivity level decrease. Because here the kitchen is a fixed capital and workers are more. When on fixed production more workers are hired then the marginal physical productivity decrease.