Comparing quarters 1 and 2, at the production level set in these quarters, which plant size is more efficient in terms of labor productivity?
Quarter 1
Production units 2950
Plant size 5
labor hours 6047
Average product of labor 0.49
Demand 3450
Quarter 2
Production units 3450.
Plant size 6.
Labor hours 7303.
Average product of labor 0.47
Demand 7147
Which is the correct answer:
a) qtr 1 plant size
b) qtr 2 plant size
c) equality efficient
d) qtr 1 plant size if demand is low
e) qtr 2 plant size if demand is high