Relationship in increases in plant size-labor productivity

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Reference no: EM131236837

Comparing quarters 3 and 4, how would you characterize the relationship between increases in plant size and labor productivity ?

a) increasing returns

b) diminishing returns

c) constant returns

d) elastic or inelastic

Also, comparing these two quarters, given the production levels, which plant size should the firm select based on labor productivity (measured by average product of labor)?

a) quarter 3 plant size

b) quarter 4 plant size

c) equality efficient

Qtr.3

Demand - 5550

plant size - 6

labor hours - 7974

Production units - 3950

Average product of labor - 0.52

Qtr. 4

Demand - 4430

Plant size - 7

Labor hours - 7237

Production units - 3950

Average product of labor - 0.55

Reference no: EM131236837

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