Entry 14: Company Experiment Reflection

After the company experiment  where we made a firm that is specialized in making a product called widget, we graphed the total production in accordance to an increase of one more labor per day. It is worthy to note that the graph did not represent what normally happens in a market but broadly resembles it. When we see the graph, we see an inconsistent graph that spikes up and plunges downward. That might be result from the different standard in quality control. At first, when we think that making the widgets isn't a big deal and is relatively easy, we gave more trouble to the only labor, Brandon, and had stricken down many of the products. However, as we gradually find time being very precious and that these widgets are actually a lot more difficult to make than we have expected, the quality control became much less strict. However, if we disregard the random spikes and drops that probably came from a result in the change of standard, we see a general increase and then a less steep increase. Eventually, towards the end, with twelve labors, the increase in production was minimal. The reason behind this is that at the given quantity of capitol, two desks, two staplers, and two scissors, there's really only so much that people can do and by hiring a lot of people, the additional labors starts to get less and less work to do. When we measure the cost, the cost rises after the marginal product starts to decrease because once additional labors stop generating the same amount of work, the relative cost per labor rises. It is worth less when a labor can make two widget than a worker that sits around doing nothing but costs the same wage. From this experiment I learned first hand the burden of more and more labor because during the experiment, I keep on telling people to stop crowding around me reaching for the stapler because stapling does not require so many people while there's only one stapler. Work space also becomes scarce as we tell the accountant and manager to make some space for the additional workers.