Social Sciences and History / Unit 13 SSH 1229 short lesson, about 20 seconds
Short Run, Long Run, Diminishing Marginal Product
Captions available
The idea
In the short run at least one input, usually capital, is fixed, so output changes only through labor. Marginal product is the added output from one more worker; eventually it declines: diminishing marginal productivity. In the long run all inputs vary.
In practice
The tenth cook in a small kitchen.
Where people slip
Diminishing returns come from the fixed input.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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