Law of Diminishing Marginal Productivity of Labour

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THE LAW OF DIMINISHING MARGINAL PRODUCTIVITY OF LABOUR The Law of Diminishing Marginal Productivity of labour Labour means The physical or mental works towards production in this process production the part of labourer is very very important .His work may be physical or mental ,but his contribution towards production is inevitable The efficiency of labour can be measured through his productivity.Productivity means the efficiency of labourer in producing an output at optimum cost. Productivity canbe divided in to two categories .They are Total productivity and Marginal productivity.Total productivity is the efficiency of a worker of his complete working hours or The skill of a worker producing output in a complete day. Mrginal productivity means the the skill in producing in his marginal hour.That is his skill in producing an output in his last working hour of that day "The Law of Diminishing Marginal Productivity of labourer" "other condition remains constant The efficiency of labourer is diminishing gradually.His skill of producing will be less than the previous hour,he worked.His productivity will become zero there are chances to go negative " It means If a worker is working eight hours in a day ,His efficiency in the first hour will be higher than the second hour .second hour skill of production is more than the third hour.In his last hour that is in the eigth hour his efficiency will be very very low .It may be zero or negative It can be explained through a schedule ================================================== Schedule showing the raltionship between Total,Average,Marginal Productivity of Labor ================================================== Working hour TOT PRO AVE PRO MARGI PRO 1 10 10 10 2 18 9 8 3

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