Before considering Figure 5.7 it should be recalled that an important basic assumption
of our original analysis was that all of the fixed factor was used in combination with
the variable inputs (e.g. a single worker cultivating a large field or a relatively small
number of workers operating a given production line). In such a case, the fixed factor is
referred to as being indivisible.1 However, in many productive situations the fixed factor
might be divisible. Thus a single agricultural worker could avoid the underutilisation of
the fixed factor by only cultivating a portion of the available acreage and in so doing
increase his/her productivity. Greater amounts of land only come under cultivation as
the labour force increases. Diminishing marginal returns now only set in once the whole
of the fixed factor is used.