Lesson Details

Unit 4: Lesson 21 - Productivity, Diminishing Marginal Returns, and the Demand for Labor

Students produce greeting cards with a fixed number of scissors and markers, and a variable number of workers. They discuss factors affecting workers productivity and the law of diminishing marginal returns. With a partner, they use marginal analysis to solve a problem about how many workers a firm should hire.

Concepts:

  • Law of Diminishing Marginal Returns
  • Productivity
  • Specialization
Standards:
  • Standard #1: Scarcity
  • Standard #2: Decision Making

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