Activity 7
Production in Short Run
Question for thought:
“How does a firm decide when there is a temporary change in output?”
Instruction for students
1. The whole group represents a plant/factory of an electronic firm “Outstanding
Electronic” (佳美電子) owned by the teacher. All groups are the plants of the firm.
2. All plants produce the same output (mobile phones), each plant has same amount of inputs
(a pair scissors, a red marker, some parts of the phone). A period of production is 2 minutes
(1 week)
3. There are 4 production periods, 1 extra worker is added continuously. (eg first period, 1
worker; second period, 2 workers; third period, 3 workers; fourth period, 4 workers)
Teacher may require some groups to have specialization when there is more than 1
worker. Produce as much as possible in each period.
4. At the end of each period, record the total amount of phones produced in table 1, and clear
up the parts and wait for the next production period.
5. When all the 4 production periods are finished, the whole group fills in the missing
information in table 2, and discusses the answers of the questions in worksheet 2.
Session 1/experiential learning/short run/activity
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Activity 7
Production in Short Run
worksheet 1
Teacher is the owner of “Outstanding Electronic” (佳美電子) which produces mobile
phones in South China. The firm has many plants/factories (6-10)
A factory/plant (group) has the following inputs/factors:
fixed factors: 1 pair of scissors, 1 markers (red), plant (tables)
Variable factors: workers (labour) and materials (parts)
Production time=2 minutes (1 month)
Production: cut the phone, mark the control buttons (6 buttons) in red.
Production schedule:
First 2 minutes, all plants produce with 1 worker
Second 2 minutes, all plants produce with 2 workers
Third 2 minutes, all plants produce with 3 workers
Fourth 2 minutes, all plants produce with 4 workers
Table 1: Production records
Production
time
(2 minutes)
Total amount of
equipment
1
1 pair of scissors,
1 marker
Total
amount of
materials
(parts)
Total amount
of workers
1
2
2
3
3
4
4
Session 1/experiential learning/short run/activity
Total
output
(no. of
phone)
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Activity 7
Production in Short run
worksheet 2
The whole group works out the missing information of the table 2, and answers the
questions below.
Table 2
Production time
(2 minutes)
Total number of
workers
Total output (TP)
(no of phone)
The output of additional
worker (MP) (no of phone)
1
2
3
4
1. The amount of which inputs/factors change when the output changes?
_________________________________________________________________________
2. The amount of which inputs/factors do not change when the output changes?
_________________________________________________________________________
3. What do you observe the output of additional worker? / describe the change of it*
_________________________________________________________________________
_________________________________________________________________________
4. What do you observe the change/trend of total output when workers increase?*
_________________________________________________________________________
_________________________________________________________________________
5. What is the firm’s production decision when output increases/decreases temporary?
_________________________________________________________________________
6. Which law can explain the change of output when workers increase? State the law.
_________________________________________________________________________
_________________________________________________________________________
7. If the change in output in your table does not fit the law, does it mean that the law is not
true? Why?
___________________________________________________________________________
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