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
Firms consider the __________ wage when considering whether to hire additional units of labor. A comparison of the average growth rates across time for developed nations indic
Suppose in the first five years of working for ABC Corporation Emily earns $50,000 a year after taxes, but ABC makes no yearly contribution toward a retirement plan for her. H
FedEx can purchase a large-volume copier for $18,000 and depreciates it by straight-line depreciation. FedEx has a 35% combined incremental tax rate. If FedEx requires a real
Why would an employer be reluctant to hire a person for a job that entailed a considerable amount of specific on-the-job trainning if the person had a high probability of leav
We are looking at the market place for good ABC. Supply and/or demand conditions are changing. Assume that after these changes occur, the equilibrium price increases while the
Select a company in your country of origin that is involved in importing and/or exporting, run a thorough research on the company’s business operation. Your goal is to underst
The water fountains in Learned Hall are costing $1200 a year to maintain. How much money can you justify spending NOW for new fountains and plumbing (materials and labor combi
You are a project manager at a bike shop. You just received a shipment of new bikes that need to be assembled. For each bike, the frame needs to be set, which includes the bik