why the unit labor costs likely overstated?

Question

the productivity grew at annual rate of 1.6% in the fourth quarter of 2006.Unit labor costs rose at a 6.6% annual rate in the fourth quarter of 2006

Answer 1

To make a better profit, not make a better widget. The dongle maker charged more per truckload, .00001% more, doesn't look like much, but a bogzillion dongles at any rate adds up over time.