Productivity After quarters increasing levels production, CEO Canadian Fabrication & Design upset learn, time expansion, productivity newly hired sheet metal workers declined worker hired. Believing workers lazy inefficiently supervised (possibly), CEO instructed shop foreman "crack" workers bring productivity levels.

Q1.Production

The apparent downturn of productivity on the part of workers has nothing to do with worker laziness and everything to do with the law of marginal returns. For every additional unit manufactured and every additional worker on the floor of the 'shop,' the profit gained from that item decreases. Workers must be paid more in overtime, which decreases the revenue gained, and additionally workers are less efficient on the floor of the factory because of logistical reasons. Crowding, impeded access to machinery and other logistical issues will diminish the marginal return from the increased production. "As the number of new employees increases, the marginal product of an additional employee will...
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