In the short run, assume diminishing marginal product of labor sets in with the hiring of the second worker. which of the following will remain constant as a firm produces more output?

General
1

in the short run, assume diminishing marginal product of labor sets in with the hiring of the second worker. which of the following will remain constant as a firm produces more output?

2

In the scenario where the firm experiences diminishing marginal product of labor with the hiring of the second worker, there are certain factors that will remain constant as the firm produces more output. These include:

  1. Fixed inputs: In the short run, some inputs are fixed and cannot be changed. Examples of fixed inputs include machinery, equipment, and the size of the production facility. Since these inputs cannot be adjusted in the short run, they will remain constant as the firm produces more output.

  2. Technology: Assuming that the level of technology remains constant, it can be considered as a fixed factor as well. The firm’s production process and methods will not change in the short run, so the level of technology will remain constant.

  3. Management: The managerial structure and capabilities of the firm will also remain constant in the short run. This includes the decisions made by management regarding production processes, resource allocation, and overall business strategy.

  4. Capital: In the short run, the amount of capital available to the firm is generally fixed. This includes the financial resources, infrastructure, and other long-term assets. As a result, the level of capital will remain constant regardless of the level of output.

It is important to note that while these factors remain constant in the short run, they may change in the long run as the firm has the flexibility to adjust all inputs and make changes to technology, management, and capital.