Question

Dilbert’s Incorporated produced 6,000,000 units of software in 2005. At the start of 2006 the pointy-haired boss raised employment from 10,000 total annual hours to 14,000 annual hours and production was 7,000,000 units. Based on these numbers what happened to productivity?
answer choices
a) It fell by about 16.7%.
b) It stayed the same
c) It rose by about 16.7%.
d) It rose by about 40%

Answer 1

Answer:

Productivity fell by about 16.7%.

Step-by-step explanation:

Consider the provided information.

Dilbert’s Incorporated produced 6,000,000 units of software in 2005.

In 2006 production was 7,000,000 units.

In 2005 they was making 6,000,000 units in 10,000 hours.

Per hour output = $\frac{6,000,000}{10000} =600$

In 2005 per hour output was 600.

In 2006 they are making 7,000,000 units in 14,000 hours

Per hour output = $\frac{7,000,000}{14000} =500$

In 2005 per hour output is 500.

That means the per hour output decreases. Or we can say that the productivity falls.

The difference between the production:

7,000,000-6,000,000=1,000,000

Therefore, they increase 1,000,000 units.

Decrease in productivity = $\frac{1000000}{6000000}\times 100=\frac{100}{6} \approx16.7$

Hence, productivity fell by about 16.7%.