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Proving Marginal revenue product (MRP)
23rd September 2012
MRP I find difficult to teach - until I did this- Making burgers! Read on for instructions!MRP burger lesson
I split group into teams, armed with photocopies of burgers, 1 pair of scissors, blue tack and attached to a wall a piece of flipchart with 4 grids (1 per month) and a team name. The flipchart needs to be a few paces from the worker. 1 person from team is given 2 minutes (can change time) to cut out burgers (on powerpoint-print 6 to a page), then stick onto the "shop". Each student will need a tracking sheet (on powerpoint) and graph paper at the end. After each round total counted and another worker counted. at end they can draw MRP and prove (hopefully) law of diminishing returns- One of my group realised that it was difficult to share capital 9scissors) as the law said capital was fixed so MRP MUST decrease. task can be used for business to show productivity - just give different grid.
Next time I will reject poorer cut out shapes.......