Topic 14: Productivity Experiment

In this experiment, we are testing the efficiency of the production as the number of workers increase. I am a worker in this experiment. The production went well when it got closer to the end. Problems came up when too many workers are doing the same job, when there are not enough capitols, and when people are not specializing.The production didn't go the way I expected, because the production is really random. The number of the production goes up and down, no matter how many worker increased. I think this happen is because the limited capitols and each worker's efficiency. Sometime people slack off a bit, and sometime it is the lack of capitols that cause the production goes bad. This result is pretty surprising because I didn't expect it goes up and down. I thought the graph would be like what the textbook described. The production goes up as the worker increase and when it reach a certain point. It falls back down. I think the company could do for the short-run is company should tie the company's wealth to the worker in order to encourage the workers to work harder, or the boss can make the entire production line more organized. For the long-run, company should increase the capitols, so more people can do other jobs, instead of everyone crazily doing one job.

Topic 13: The Return of the Zeppelin

Determinants of demand are the prices of related goods, expected future prices, income, expected future income, population, and preferences. Determinants of supply are the price of factors of production, the prices of related goods produced, expected future prices, and technology. The determinants that apply to the success of Zeppelin and to Airship Ventures are technology, preference, and expected future price. Bank investment is one of the determinants of success of Zeppelin. If no one invest, the cost will be very great! Technology has totally change the return of Zeppelin. They change the gas in Zeppelin from hydrogen to hellion, so the Zeppelin won't explode when it react with oxygen. Also, the technology make the experience better by reducing the noise and the machine. Airship Ventures is an oligopoly, only three airship company own a Zeppelin and only one in the United States. Three determinants of demand for the success of Airship Ventures are preference, expected future prices, and the prices of related goods. People's preference decrease when the Zeppelin exploded years ago, and decrease the demand for it. The prices of related goods also affect the success.  If a hot air balloon can do the same thing but cheaper, then people will tend to go with hot air ballon. I think airship travel is not a good idea. Only when the price of the Zeppelin is lower than the related goods, I will consider it.