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A study by the McKinsey Global Institute reported that labor productivity increased at an average annual rate of 5.8 percent between 1999 and 2013 in
A study by the McKinsey Global Institute reported that labor productivity increased at an average annual rate of 5.8 percent between 1999 and 2013 in Mexico's large companies, but fell at an average annual rate of 6.5 percent over the same period for Mexico's smaller firms, such as family-owned stores and bakeries. Source: Anthony Harrup, "Two Economies Explain Mexico's Productivity Quandary," Wall Street Journal, March 27, 2014. Part 2 Productivity growth would be much higher for Mexico's largest companies than for its smaller companies because the A. smaller companies cannot achieve the scale to compete with larger companies. B. smaller companies are more highly regulated and so have lower productivity growth. C. larger companies have more employees, so they are more likely to be included in statistical information. D. larger companies have greater access to better technology which stimulates productivity growth
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