Unemployment

The law of diminishing marginal product is the principle that as the number of units of the variable input increases, other inputs held constant, a point will be reached beyond which the marginal product decreases. If a manager hires another worker it may or may not decrease the diminishing return, depending on how much of the marginal product is being produced. Maybe if the company gets more equipment to help produce more, then they would not have to worry about the diminishing return. So for instance say a company that makes sneakers, produces 20 sneakers per hour with only 1 worker. Two workers could produce 45 sneakers within 2 hours. This will make the marginal product 5 more than the first worker. Adding another worker could have 60 more sneakers produced making the marginal product 25 (45-20). (Thomas & Maurice, 2011)pg.296 Adding more workers eventually could decrease the diminishing return negatively, because the production would remain constant and revenue may not be increasing. There may not be a gain of profit.With the solution founded, the last printer only produces 1 book, while the other book produces at 0.2. Therefore the optimal input choice is not being made. I think more printers needs to be added than having printing presses because they are producing more. But whenever more printers are being added the cost may go up.a) The Mortex Company produces entirely by hand, even though they have a machine that can produce much more. If they have were to reduce the cost by 5400 units per day then there would only be 27 workers working because each worker can produce at 200 per units per day. (5400/200=27) Workers cost $50.00 which is only $1350.00 per day. (27*50). With the machine the cost is 5400/1800 which totals to 3 machines. 3 machines times 600 is 1800. So the cost is more by purchasing more machines instead of hiring the amount of workers needed to produce at a lesser cost.