Productivity concerns at RKU

No. of workers Total production Average production Marginal production

1 10.00 10.00 10.00
Diminishing returns to labour
2 22.00 11.00 12.00 Total production Average production Marginal production
3 36.00 12.00 14.00 90
4 52.00 13.00 16.00
5 66.00 13.20 14.00 80
6 76.00 12.67 10.00
70
7 82.00 11.71 6.00
8 85.00 10.63 3.00 60 Stage1: Stage2: Stage3:
9 85.00 9.44 0.00
50 Increasing Diminishing Negative
10 83.00 8.30 -2.00
returns returns returns

Output
40

30
Total production = No. of tasks completed (given)
20
Average production = Total production/No. of workers
Marginal production = {Total production with n workers – Total 10
production with n-1 workers}
0
1 2 3 4 5 6 7 8 9 10
-10
No. of workers
Sr.No. Stages of Building Construction Labor Capital Labour intensive? Capital intensive? Status
1 Choosing and buying the site Y
2 Designing the building Y
3 Buying, planning materials and labor Y Y 50% of the
4 Levelling the land Y project has
5 Drawing the layout of the building Y been
6 Excavation and laying the foundation Y completed
7 Erecting the frame of the building Y
8 Initial wiring Y
9 Putting the roof Y Potentially
10 Constructing the walls and interiors Y Potentially
11 Plastering of ceiling and walls Y Potentially
12 Plumbing and wiring Y
13 Finishing the inside walls and paintings Y
14 Installing fixtures Y
15 Flooring Y
16 Painting Y
17 Decorating and landscaping Y Y