At the claims-processing office for All-Folks Insurance, 25 employees process 2,500 claims a day. The claims-processing office for Purple Cross Insurance uses a state-of-the-art computer system, and its 15 employees process 3,000 claims a day.

a. Which office is more productive?

b. At which office would you expect that empolyees are paid more? Why?

c. Suppose that half the claims processed by the employees at purple Cross contain errors and all of the claims processed at All-folks are done correctly. Which office would you say is more productive? Why?