Question

A catering company prepared and served 350 meals at an anniversary celebration last week using 8 workers. The week before, 2 workers prepared and served 230 meals at a wedding reception. a1. Calculate the labor productivity for each event. (Round your answers to 1 decimal place.) Anniversary meals/worker Wedding meals/worker a2. For which event was the labor productivity higher

Answer 1

Answer:

Labour productivity at an anniversary celebration = 43.75

Labour productivity  at a wedding reception = 115

Labour productivity is higher at the wedding reception.

Explanation:

Labour productivity is the ratio of output to labour

Labour productivity at an anniversary celebration = 350 / 8 = 43.75

Labour productivity  at a wedding reception = 230 / 2 = 115

Labour productivity is higher at the wedding reception. Less labour produces more more meals.

This can be explained by the law of diminishing marginal returns

the law of diminishing returns states that as more units of a variable input is added to a fixed income of production, output might increase at a point but after some time total output would increase at a decreasing rate and marginal product would be decreasing.