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Labor productivity = output per hour worked. Adding people does not change labor productivity.
by rgbrenner 5y ago
Labor productivity = output per hour worked. Adding people does not change labor productivity.
- SkittyDog 5y agoMostly true, to a point... But there will usually be a point of diminishing returns on marginal labor productivity, when we hit the limits of capital utilization. But that's not really relevant in thr current labor market... it seems clesr enough that we're way over at the other end of the scale.