Team D Week Two Learning Reflection
Team D Week Two Learning Reflection
ECO/365
February 25th, 2013
Team D Week Two Learning Reflection
2.1- The relationship between the number of inputs and the law of diminishing marginal productivity is that as more input is added to an existing fixed input, eventually the additional output one gets from that additional input will fall. As input is increasing and a company hires more workers to increase, eventually it will fall and a company wants to try to stay out of that range.
2.2 – The Relationship between productivity and the cost of production can best be expressed by first understanding the definition of the word “productivity”. The study of output during a defined period is the definition of the word productivity. More output in a given time is expanded productivity. The cost of production is simply this – the cost in dollars or total production of a particular finished product (or service). Therefore, the relationship is direct and critical. The better the productivity of a given organization, the lower cost the organizations product will be and therefore (assuming pricing power), one can expect greater profit margins per unit based on lower cost of production via higher efficiency of the creation process.
2.3 - The value of a manufactured product is mostly determined by supply and demand. A sense of balance is between what people are set to supply at a cost, and the community asking price to pay for the manufactured product. When the value increases the amount which will be distributed increases also. It is important to understand the market. If traders have reason to believe a possible shortage of a product should arise they may increase the cost of the product. The converse is also correct. When the market predicts a little or close to an oversupply the cost will fall almost immediately. The shift of the demand curve is another change in demand. The quantity demanded at any prices will happen because of the shift. Companies that supply
ECO/365
February 25th, 2013
Team D Week Two Learning Reflection
2.1- The relationship between the number of inputs and the law of diminishing marginal productivity is that as more input is added to an existing fixed input, eventually the additional output one gets from that additional input will fall. As input is increasing and a company hires more workers to increase, eventually it will fall and a company wants to try to stay out of that range.
2.2 – The Relationship between productivity and the cost of production can best be expressed by first understanding the definition of the word “productivity”. The study of output during a defined period is the definition of the word productivity. More output in a given time is expanded productivity. The cost of production is simply this – the cost in dollars or total production of a particular finished product (or service). Therefore, the relationship is direct and critical. The better the productivity of a given organization, the lower cost the organizations product will be and therefore (assuming pricing power), one can expect greater profit margins per unit based on lower cost of production via higher efficiency of the creation process.
2.3 - The value of a manufactured product is mostly determined by supply and demand. A sense of balance is between what people are set to supply at a cost, and the community asking price to pay for the manufactured product. When the value increases the amount which will be distributed increases also. It is important to understand the market. If traders have reason to believe a possible shortage of a product should arise they may increase the cost of the product. The converse is also correct. When the market predicts a little or close to an oversupply the cost will fall almost immediately. The shift of the demand curve is another change in demand. The quantity demanded at any prices will happen because of the shift. Companies that supply