Topic 14: Productivity Experiment

Please write about the in-class experiment you performed by producing widgets (those paper rings). In it please describe the experiment and your role in it. Write about what went well and where problems came up, keeping in mind concepts like the law of diminishing returns (both for labor and capitol), capital accumulation (especially in terms of human capital), and division of labor and specialization. Did things go the way you would have expected in terms of these concepts? If not, why do you think that was so? What were the surprises, if any? What do you think the "company" could do in the short-run to improve productivity? What about the long-run? How close do you think this experiment came to approximating a real-life situation?

• The experiment was to test how the number of laborers and capital varies and influences that amount of product produces, and what the costs were. These are determined and described with marginal product and marginal cost. My role in this experiment was the last laborer to be added, the twelfth laborer. There were many problems in this experiment. It went well when there was only one worker. However, when more and more workers were added, the cooperation between these workers was very ineffective and inefficient. Our curve was very strange. The marginal product was increasing and then decreasing in the first few work days, but later on it gradually increased, even if it is slightly. However, diminishing returns was still illustrated. Once again, the experiment didn't go as we had expected in terms of concepts such as the law of diminishing returns, capital accumulation, and division of labor and specialization. The reason was mainly because of "technical issues", or capital problems, and because there wasn't an effective and efficient system of division of labor and specialization. The surprise was that the quality of the products was very bad because of the insufficient time in the work day. To improve productivity in the short-run, the firm should allocate one day to dividing and specializing labor. To improve productivity in the long-run, the firm should increase capital such as scissors and staplers, since there was too much labor capital and the technological capital could not be distributed evenly. This experiment, I believe, is quite far from approaching a real-life situation.

Topic 13: The Return of the Zeppelin

Watch the video (a required assignment, so be sure to click "submit" after you watch it) "The Return Of Zeppelin." After watching it, you should also watch a clip of the Hindenberg disaster. There are many on YouTube. Here is a link to one: http://youtu.be/F54rqDh2mWA.

When you have watched the videos, write about the following:

• Discuss the determinants of demand and supply, and which of these determinants apply to the success of Zeppelin and to Airship Ventures. 
• Discuss the role technology has played in the return of the Zeppelin. Review the different market structures (perfect competition, monopolistic competition, oligopoly, and so on) to identify which market structure best describes Zeppelin and which best describes Airship Ventures. 
• List three determinants, or variables, of demand and explain how changes in those determinants could result in the continued success of Airship Ventures.
• Finally, express your thoughts on airship travel. Do you think it is a good idea? Under what circumstances would you want to try it, if ever?

• The determinants of demand include change in consumer tastes, change in the number of buyers, change in consumer incomes, change in the prices of complementary and substitute goods,  and change in consumer expectations. The determinants of supply include change in input prices, change in technology, change in taxes and subsidies, change in the prices of other goods, change in producer expectations, and change in the number of suppliers. The most major determinants that apply to the success of Zeppelin and Airship Ventures include change in consumer tastes, change in technology, and change in number of suppliers.
• Technology is the major force that changed consumer preferences. Now that Zeppelins are safer and more advanced, more consumers are turning to Zeppelins as an option of transportation. I believe that the best market structure to identify Zeppelin is monopoly, and the best market structure to identify Airship Ventures is oligopoly.
• Three determinants, or variables, of demand that can result in the continued success of Airship Ventures include change in consumer tastes, change in technology, and change in input prices. If consumer tastes start to incline toward Zeppelin, then Airship Ventures will be able to increase their sales and profit. Advanced in technology would further change consumer tastes and also help decrease certain costs. Decreases in input prices means that Airship Ventures will be more efficient and will earn more profit.
• Yes, I believe airship travel is a good idea, especially for industries such as tourism. I would like to try airship travel in a small area, where the sky is clear and the view is magnificent.