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"Total productivity vs labor productivity Anyone care to explain their mutual interaction?
I'm doing a paper on labor productivity and total productivity (multifactor productivity, if you wish). And looking at some statistics, I can't quite connect the two. Say the labor productivity drops as total number of worker increases (diminishing returns?) while total productivity continues to rise (as you would expect when a business grows). But I'm not quite connecting the two together - how can the indicators move inversely to each other?
With the numbers that I have at hand, I've also come to find that labor productivity eventually starts increasing again which I quite can't explain. More capital invested as a firm gets larger can perhaps be accounted for that?" *eNotes Editorial*, 11 Feb. 2013, https://www.enotes.com/homework-help/total-productivity-vs-labor-productivity-409140.
Accessed 7 Oct. 2022.