Topic 14: Productivity Experiment

In this experiment we are observing the relationship between the numbers of workers and the efficiency of the work. My job in that experiment is the worker who is hire by the boss of the firm to work for the product. I join the firm at the middle of the time which is about eight workers at that time working in the firm. At the beginning the marginal benefits keeps going up after each unit of worker is add in the firm. However, when the workers keep adding in firm, the marginal benefits keep decreasing and become negative at the end. At the end when twenty workers are working in one firm produce about the same products compare to five workers. Which is very inefficient because the boss will need to pay extra money for those workers who are doing nothing are can’t do anything to help because of the lack of capital. This is what I expected will happen because the products will not keep going up when the workers are increase. In the short terms, the company can make the productivity to the highest by keeping the workers at the numbers that produce the maximum marginal benefits. In the long terms, If the marginal benefits keep decreasing, the firm shall just shut down or add more capital in order to keep the company running and learn money.