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Q. If it wanted to increase productivity, a company currently employing 115 workers per supervisor should consider
  • a)
    adding 15% more workers
  • b)
    halving the number of supervisors
  • c)
    doubling the number of supervisors
  • d)
    reducing the worker staff by 25%
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
Q.If it wanted to increase productivity, a company currently employing...
At 115 workers per supervisor, we are on the sloping down side of the curve, suggesting that we need to have slightly fewer workers per supervisor. The question asks about which option would increase productivity (not necessarily maximize it, just increase it), and since only one option can be right, it must be that three of the options will not increase productivity and only one will. 

First option - Adding more workers will mean moving to the right on the curve - more workers per supervisor - which clearly has lower productivity. 

Second option - halving the number of supervisors would mean doubling the number of workers per supervisor, to 230, and as per the trend of the graph, this would presumably have lower productivity. 

Third option - doubling the number of supervisors would mean that the ratio of workers to supervisor would be halved, to around 57.5 workers per supervisor, which has a lower productivity rate than 115 workers per supervisor. 

Fourth option - with 25% fewer workers, the company would have around 87 workers per supervisor. Looking at the curve, although the difference is not huge, this is clearly a more productive ratio than 115 workers per supervisor. Select this final option.
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