One kitchen. How many cooks?
With equipment fixed, additional workers eventually add less output. Diminishing marginal output does not mean total output is falling.
Inside this model
Output Q(L) = capacity × (1 − exp(−L/5)). Each meal sells for one unit. Profit is Q(L) − wage × L. The next-worker statistic is Q(L+1) − Q(L), while the chart compares revenue and labour cost for 0–20 workers.
Out in the world
A practical use
A café can compare hiring another cook with investing in more equipment. The important comparison is the extra output against the extra cost.
A useful lens. Not a universal law.
- This concave production curve is imposed for teaching. Real teams can initially improve through specialization, and bottlenecks can create abrupt changes.
Further reading
Explore the original research or the teaching reference behind this experiment.
OpenStax — Production in the short run ↗