Skip to content

Production Function Explorer

Run the Production Function Explorer MicroSim Fullscreen
Edit in the p5.js Editor

About This MicroSim

This MicroSim visualizes the concept of diminishing marginal returns by simulating a pizza shop where students add and remove workers. As more workers are added, total output increases but at a decreasing rate because workers start bumping into each other and competing for limited oven space. The simulation also allows students to add a second oven, demonstrating how increased capital investment can shift the entire production function upward.

How to Use

  1. Click "Add Worker" to hire a new worker (up to 8 maximum). Watch the pizza shop scene fill with workers and observe how total output changes.
  2. Click "Remove Worker" to reduce the workforce and see output decrease.
  3. Click "Add Second Oven" to toggle a second oven on or off. Notice how the total output curve shifts upward, showing the effect of increased capital.
  4. Observe the charts on the right side: the blue line shows total output per worker count, while the colored bars below show marginal product (the additional pizzas each new worker produces).
  5. Click "Reset" to return to zero workers with one oven.

Iframe Embed Code

You can add this MicroSim to any web page by adding this to your HTML:

<iframe src="https://dmccreary.github.io/economics-course/sims/production-function-explorer/main.html"
        height="477px"
        width="100%"
        scrolling="no"></iframe>

Lesson Plan

Grade Level

9-12 (High School Economics)

Duration

10-15 minutes

Prerequisites

  • Understanding of what inputs and outputs are in a business
  • Basic graphing skills (reading line charts and bar charts)

Activities

  1. Exploration (5 min): Add workers one at a time from 0 to 8. Record the total output and marginal product for each worker. At what point does the marginal product start declining?
  2. Guided Practice (5 min): Add a second oven and repeat the experiment. Compare the two production functions. How does additional capital change the point where diminishing returns set in?
  3. Assessment (5 min): Explain why the 7th and 8th workers add very few pizzas. Propose a real-world solution (besides adding ovens) that could increase the marginal product of additional workers.

Assessment

  • Students can define diminishing marginal returns and identify when it begins in the simulation
  • Students can explain the relationship between total product and marginal product
  • Students can describe how additional capital (the second oven) affects production

References

  1. Production function - Wikipedia - Overview of production functions and the relationship between inputs and outputs.
  2. Diminishing returns - Wikipedia - Explanation of the law of diminishing marginal returns with examples.
  3. Production and Costs - Khan Academy - Video lessons on production functions, marginal product, and cost structures.