5. Three members of the operations management team at a plant manufacturing steel tubing for construction projects are discussing a possible increase in production. Each suggests a way to make this decision.

a. Team member 1: We should base the decision on whether labour productivity would rise if we increased output.

b. Team member 2: We need to focus more on cutting our average cost per tube – this will help us to be more competitive against our rivals.

c. Team member 3: We should only increase output if the extra revenue from selling the additional tubes would be greater than the extra costs.

Who do you think is right? Why?