managerial economics

After two quarters of increasing levels of production, the CEO of Canadian Fabrication & Design was upset to learn that, during this time of expansion, productivity of the newly hired sheet metal metal workers declined with each new worker hired. Believing that the new workers were either lazy or ineffectively supervised (or possibly both) the CEO instructed the shop foreman to "crack down" on the new workers to bring their productivity levels up.
a. Explain carefully in terms of production theory why it might be that no amount of "crack down" can increase worker productivity at CF%D.
b. Provide an alternative to cracking down as a means of increasing the productivity of the sheet metal workers.

  1. 👍
  2. 👎
  3. 👁
  1. a) apply the law of diminishing returns.

    a) Apply an increasing returns-to-scale reasoning argument.

    1. 👍
    2. 👎

Respond to this Question

First Name

Your Response

Similar Questions

  1. social studies

    What would be a likely environmental impact of a future technological innovation that reduced greenhouse gases? A. reducing volcanic eruptions B. increasing sea levels C. increasing coral bleaching D. · slowing climate change

  2. math

    A factory can produce two products, x and y, with a profit approximated by P = I think it's b but I'm not really sure. Can someone show me how to do this or let me check my answer? :) 14x + 22y – 900. The production of y can

  3. linear programming app

    write the constraints as linear inequalities and identify all variables used. A canoe requires 8 hours of fabrication and a rowboat 5 hours. The fabrication department has at most 110 hours of labor available each week

  4. Social Studies

    Which factor contributes to the strength of hurricanes? A- warmer ocean temp B- cooler ocean temp C- risimg sea levels D- increasing levels of pesticides and other pollutants***

  1. Algebra (Please check)

    PLEASE CHECK MY ANSWERS (: I just want to make sure I am doing this correctly __________________________________ Graph the system of constraints and find the value of x and y that maximize the objective function. Constraints: x

  2. Mathematics

    HELP PLEASE! URGENT! Greg started with a certain number of quarters. He then decided on a number of quarters he would save each day. He added the quarters he saved to the amount with which he started. At the end of day 2, Greg had

  3. Calc

    The amount A(t) of a certain item produced in a factory is given by A(t) = 4000 + 48(t - 3) - 4(t - 3)³ where t is the number of hours of production since the beginning of the workday at 8:00 am. At what times is the rate of

  4. Algebra

    a factory can produce two products, x and y with a profit approximated by P=14x+22y-900. the production of y can exceed x by no more than 100 units moreover production levels are limited by the formula x+2y,+1,400. what production

  1. Physical Edu

    The transformation of love progresses in the following way: a. high levels of passion, increasing intimacy, diminished romance, enduring love. b. high levels of passion, increasing intimacy, diminished romance, breakup of

  2. math

    Reboot, Inc. is a manufacturer of hiking boots. Demand for boots is highly seasonal. In particular, the demand in the next year is expected to be 3,000, 4,000, 8,000, and 7,000 pairs of boots in quarters 1, 2, 3, and 4,

  3. Math

    PLEASE HELP!! SHOW WORK A factory can produce two products, x and y, with a profit approximated by P = 14x + 22y – 900. The production of y must exceed the production of x by at least 100 units. Moreover, production levels are

  4. managerial economics

    At a recent board meeting, the president and CEO got into a heated argument about whether to shut down the firm's plant in Miami. The Miami plant currently loses $60,000 monthly. The president of the firm argued that the Miami

You can view more similar questions or ask a new question.