Question

What is labor productivity? Please discuss the two main factors which affect labor productivity.

What is per-worker production function? We know the production function is a curve (not a

straight line). Why does it have that curvature?

Answer 1

Labour productivity is defined as the putput per unit of labour input. It refers to amount of goods or services produced by one hour of labour.

There are lots of factors which influence the labour producitvity they are,

Stacking of trades

Joint occupancy

Beneficial occupancy

Overtime

BUt the twomost inportanat factors are:

Technical effeciency and increased capital equipment.

Perwoker prodcution function has a curve because as the number workers increase the perunit prodcution initially and then starts declining after a maturity level.