Current Market Conditions Analysis competitive Analysis Essay

Current Market Conditions Analysis warlike Analysis - Essay ExampleThe relationship between the amount of labour and capital employed with regards to the legal philosophy of diminishing productivity helps focusing in various ways. The management can be able to expurgate levels of various inputs in a bid to adjust productivity usually upwards. The main issue that faces management can be deciding what the best level of input is to maximize profit as irrelevant to maximizing production. As firms vary the number of players in a bid to vary labour, the addition of to a greater extent workers strains the small work space and tools. This ultimately leads to down slope in the marginal product of labour. Since trim and Capital are the only fixed factors of production, labour would be the only factor varied here.The close substantial effects of the diminishing marginal returns for a company can be its effect on the cost of production. Productivity of labour gets determined by the varia ble cost of labour. When productivity of a worker goes up the cost of production goes down but when a firm goes through diminishing marginal returns, the productivity goes down. The cost of extra units excessively begins to raise this, therefore, results in low profits. (Becker 2007)Although making profit whitethorn be the key goal for many firms, finding the best way to maximize profits without change so many inputs in production can be important. Analyzing the best mix of the factors of production change labour will eventually lead to maximum profits and opportunities for firms. Analyzing primary competitors production strategies can also help in evaluating the best way to handle