The Good'n'Fresh Grocery Store has two checkout lanes and four employees. Employees are equally skilled, and all are able to either operate a register (checkers) or bag groceries (baggers). The store owner assigns one checker and one bagger to each lane. A lane with a checker and a bagger can check out 40 customers per hour. A lane with a checker only can check out 25 customers per hour.

a.In terms of customers checked out per hour, what are total output and average labor productivity for the Good'n'Fresh Grocery Store?

Instructions:Enter your response for total output as a whole number and round your response for average productivity to one decimal place.

Total output:customers per hour.

Average productivity:customers per hour, per worker

b.The owner adds a third checkout lane and register. Assuming that no employees are added, what is the best way to reallocate the workers to tasks?

multiple choice 1

• Two lanes with only checkers and one lane with a checker and a bagger.
• Two lanes with a checker and bagger and one lane left empty.

Instructions:Enter your response for total output as a whole number and round your response for average productivity to one decimal place.

What are total output and average labor productivity (in terms of customers checked out per hour) now?

Total output:customers per hour

Average productivity:customers per hour, per worker

c.The owner adds a fourth checkout lane and register. Assuming that no employees are added, what is the best way to reallocate the workers to tasks?

multiple choice 2

Two lanes with one checker and one bagger each.Do not use the fourth lane.Four lanes with checkers only.

Instructions:Enter your response for total output as a whole number and round your response for average productivity to one decimal place.

Total output:customers per hour

Average productivity:customers per hour

The owner adds a fifth checkout lane and register. Assuming that no employees are added, what is the best way to reallocate the workers to tasks?

multiple choice 3

Two lanes with one checker and one bagger at each.Do not use the fifth lane.Two lanes with only checkers and one lane with a checker and a bagger.

Do you observe diminishing returns to capital in this example?

multiple choice 4

No, adding all five lanes will increase output.Yes, adding a fifth lane will not increase output.Yes, adding a third lane will not increase outputYes, adding a fourth lane will not increase output

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