Total productivity vs labor productivity - Business Discussion

Thank you for the reply. I understand that without further investments in new equipment and production techniques, output per worker can't increase for too much longer when more labor force is used.

However, what I was really wondering how it is that total productivity - that is output divided by all input - can still grow even when labor productivity starts dropping during a firm's growth process. That would imply that some inputs are still decreasing during the process. This of course is a wild guess, but I would assume that inputs such as electricity costs and other services are more efficiently used as a company evolves?

Eventually, obviously, a large enough company would be able to make the necessary investments for more capital intensive production, which would explain why labor productivity starts an upwards trend again. Am I on the right track here?

Source: http://www.enotes.com/business/discuss/total-productivity-vs-labor-productivity-122466

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