Labor productivity is measured by the average product of labor; i.e.,the quantity produced divided by the labor time required to produce it.All other things held constant,an increase in labor productivity will increase throughput by
A)increasing productive capacity.
B)increasing productive processing time.
C)increasing yield.
D)increasing all components of throughput.

Question

Quizplus · Accepted Answer

An increase in labor productivity means that more output is being produced in the same amount of time. This means that the productive capacity of a business is increasing, as workers are able to produce more with the same amount of resources. Therefore, an increase in labor productivity will increase throughput by increasing productive capacity. Choices B and C are incorrect because they do not directly relate to an increase in productive capacity, and choice D is too broad and encompasses all possible components of throughput, without providing a specific explanation for how they will increase.

Labor Productivity Is Measured by the Average Product of Labor;