MARGINAL PRODUCTIVITY - Explained for beginners!

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  • Опубліковано 15 вер 2024
  • By adding one more worker, productivity can decrease ...
    We often tend to confuse that the increase in productive factors always increases production, which happens up to a certain point and then is reversed.
    For example, if we hire a new staff member at a bakery but we don't have tools that he can use, the only thing he can do is steal time from the current staff.
    This is natural and logical.
    To understand marginal productivity, it is very important to understand that productive factors are dependent on each other and that one cannot be productive without the other.
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