Case Study

Production Technology Decision

An operations manager must decide which of two technologies to use for a specific production run. The primary goal is to select the technology that yields the highest output per worker for this run.

  • Technology X uses a team of 4 workers and produces a total of 2,000 units per day.
  • Technology Y has a documented average product of 520 units per worker per day.

Based on a direct comparison of their average product of labor, which technology should the manager choose? Justify your answer with a calculation.

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Updated 2025-07-29

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