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SingaporeBusiness StudiesQuick questions

Operations Management

Quick questions on Productivity and efficiency explained: O-Level Business Studies

5short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is measuring labour productivity?
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$Labour productivity=Total outputNumber of workers\text{Labour productivity} = \frac{\text{Total output}}{\text{Number of workers}}$
What is not linking productivity to unit cost?
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The key exam point is that higher productivity spreads costs over more units, lowering unit cost and improving competitiveness.
What is q1?
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State the formula for labour productivity. [2 marks]
What is q2?
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A team of 8 workers produces 2,400 units a week. Calculate the labour productivity. [2 marks]
What is q3?
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Explain why an increase in productivity reduces a firm's unit costs. [4 marks]

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