Illustrate what is the average labor productivity
Course:- Business Economics
Reference No.:- EM1349654

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Harrison, Carla and Fred are housepainters. Harrison and Carla can paint 100 square feet per hour using a standard paintbrush, and Fred can paint 80 square feet per hour. Any of the three can paint 200 square feet per hour using a roller.

a. Assume Harrison, Carla and Fred have only paintbrushes at their disposal. Illustrate what is the average labor productivity, in terms of square feet per painter-hour, for the three painters taken as a team? Assume that the three painters always work the same number of hours.

b. Repeat part a for the cases in which the team has one, two three or four rollers available. Are there diminishing returns to capital?

c. An improvement in paint quality increases the area that can be covered per hour (by either brushes or rollers) by 20 percent. How does this technological improvement affect your answers to part b? Are there diminishing returns to capital? Does the technological improvement increase ore reduce the economic value of an additional roller?

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