Analyzing Changes in Labor Productivity
A manufacturing plant currently employs 100 workers and produces 20,000 units per week. The plant manager is considering hiring 20 additional workers. With 120 workers, the manager projects that total weekly output will increase to 22,800 units.
Analyze the effect of hiring the additional workers on the plant's labor productivity. In your response, first calculate the average product of labor for both the current and projected scenarios. Then, explain the change in productivity, discussing why the output per worker might change even as the total output increases.
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