An owner of a local movie theater is having difficulty maximizing labor. Sometim
ID: 1180577 • Letter: A
Question
An owner of a local movie theater is having difficulty maximizing labor. Sometimes there are too many employees on duty and sometimes there are not enough employees working. Discuss how you would advise the owner using the production function.
An owner of a local movie theater is having difficulty maximizing labor. Sometimes there are too many employees on duty and sometimes there are not enough employees working. Discuss how you would advise the owner using the production function.Explanation / Answer
A production function relates physical output of a production process to physical inputs or factors of production. Your factor of production (in relevance to this question) is labor. Statistically it is possible to take count when the business is most busy by tracking the number of transactions every hour during the theater's open hours. Using sufficient data it will be possible to find patterns of when the theatre is and isn't busy. The owner should then be able to allocate his labor accordingly using the data collected to maximize labor.
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