Suppose that Tim runs his own lawn care service and that his firm is competitive in the lawn care industry. He has a fixed number of tools that can be used to maintain a yard, but he needs to determine the productivity gained from hiring various numbers of workers per week.

Question

Business

Miranda Dillon

25 February, 01:52

Suppose that Tim runs his own lawn care service and that his firm is competitive in the lawn care industry. He has a fixed number of tools that can be used to maintain a yard, but he needs to determine the productivity gained from hiring various numbers of workers per week.

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Answers (1)

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Holden Graves · Answer 1

Yes Tim needs to determine the productivity gained from hiring various numbers of workers per week so as to ascertain when the marginal labour input has reach its diminishing returns. (i. e., when additional labour input has stopped adding to the overall productivity).

Explanation:

Though, Tim owns the tools for the maintenance of the business, he should make provisions for depreciation to take care of the wear and tear of the tools and possible replacement when due. He should as a matter of desideratum consider the cost of hiring additional labour, lest it becomes unproductive to continue in that abberative trend.