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

Assignment Help
Assignment Help >> Business Economics

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?

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Business Economics) Materials
If the demand curve is QD = 100 - 10P and there is a $1 price increase, then the elasticity of demand at P = 2 is 2. If the absolute value of a demand elasticity is less than
The Family Education Rights and Privacy Act (FERPA) was passed in 1974 to protect the privacy rights of students in higher education institutions. It is appropriate to menti
Suppose the price and quantity equilibrium is below the price and quantity which maximizes total revenue, what strategy would you use for the firm. Assume that the demand curv
Suppose there are two firms in a market that each simultaneously chooses a quantity. Firm 1's quantity is q1, and firm 2's quantity is q2. Therefore the market quantity is Q =
A project manager must consider several components when overseeing the planning process of aggregate operationsspecifically, whether such components are factors that are inte
Why are people very interested in the economics of cancer care? how does its cost affect the economic aspects of the society (forecast using macroeconomic tools for analysis l
Assume that a consumer has the utility function U(x,y) = 3x+y, where x and y represent the quantities of two goods, X and Y. The consumer has I=$60 to spend on the two goods,
Assume that a 1- year discount bond (bond A) with a face value of $1,000 is currently trading at PV = $943.40 offers YTM = 6%, and another 2-year discount bond (bond B) with i