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3.5.1 Demand for labour

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Question 4

Extract B: Marginal productivity of harvesting technicians

AeroGreens operates vertical farming modules in urban centres, specializing in organic microgreens. Each module has a fixed number of vertical hydroponic trays and automated nutrient delivery systems. AeroGreens currently schedules four harvesting technicians per shift per module, which is one more than the industry standard. However, the marginal productivity of this fourth technician is extremely low, primarily due to physical constraints of the workspace—specifically, a limited number of scissor lifts and access ports to the high-level trays. By streamlining shifts and reducing the technician headcount per module, AeroGreens intends to lower its unit labour costs and raise its return on capital.


Explain the likely impact of the law of diminishing marginal productivity of labour on harvesting technician staffing levels at AeroGreens. Refer to Extract B in your answer.

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3.5.1 Demand for labour Questions

  1. A Level
  2. /Economics
  3. /3.5.1 Demand for labour