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While focusing on the effectiveness of teamwork and in attempt to find out the most productive ways of organizing work, managers of a fictional organization by the name, XCorp reached the following conclusions: 1. For any given set of workers that were put in a team, the total output produced by the team exceeded the total output produced when the workers worked in isolation. 2. Holding the number of workers constant, a team where workers were friends with one another was more productive than a team where workers previously did not know each other well. This paper is purposed to explain the above assertions.