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
Heart Plus faces a cost of holding inventory that is higher than its competitors. The salespeople are clearly overstocking hospitals in their territory. They have asked you to
What does influence consumer decision making? What is the role of price in consumer decision making? What is the role of metrics in company’s performance? How can companies us
What do you make of Rawl's assertion that "... social and economic inequalities, for example inequalities of wealth and authority, are just only if they result in compensating
A multiple regression equation is created with 4 independent variables and 24 data observations. The resulting F value is 4.10. If all other statistics for the regression are
Health insurance companies are oligopolies, and one of the criticisms of oligopolies is the adverse impacts these firms have on income distribution. Discuss in relation to the
Supply-side economics is a theory in macroeconomics that lowering barriers in goods and services, along with investment in capitol will effectively create economic growth. Thi
You are the CEO of a multinational corporation that operates in more than 100 nations worldwide. Recent changes in the global economy, such as the expansion of the European Un
A plastics company is considering two injection molding processes. Process X will have a first cost of $600,000, annual costs of $200,000, and a salvage value of $100,000 afte