Brigid Boats is a manufacturer of customized sailboats. In 2013, the company produced 74 boats, in 2014 it built 77 boats, and in 2015 it built 79 boats. The company's cost of labor was $575,000 in 2013, $600,000 in 2014, and $610,000 in 2015. What direction did Brigid's productivity growth rate change from 2013 to 2014 and then from 2014 to 2015?

Question

Quizplus · Accepted Answer

To calculate productivity growth rate, we need to divide the number of boats produced by the cost of labor. 
- In 2013, Brigid produced 74 boats with a cost of labor of $575,000, so the productivity growth rate was 74/575,000 = 0.00012870. 
- In 2014, the company produced 77 boats with a cost of labor of $600,000, so the productivity growth rate was 77/600,000 = 0.00012833. This shows a slight decrease in productivity growth rate from 2013 to 2014.
- In 2015, Brigid produced 79 boats with a cost of labor of $610,000, so the productivity growth rate was 79/610,000 = 0.00012951. This shows an increase in productivity growth rate from 2014 to 2015. Therefore, the answer is B, decrease and then increase.

Brigid Boats Is a Manufacturer of Customized Sailboats