1
Q
Define labour intensive
A
When labour costs outweigh the capital costs of a business.
2
Q
Define labour productivity
A
The amount of output that is obtained from each employee.
3
Q
What is the formula for labour productivity?
A
Output per period / No. of employees
4
Q
What are some ways to increase labour productivity?
A
Improving worker motivation
Training workers
Using new technology to increase speed
5
Q
Define unit costs
A
The cost of producing one unit of output.
6
Q
What is the formula for unit costs?
A
Total costs/units of output
