Economics 9708 · AS & A Level · 7.7

7.7 — practice question

In Company X, the number of workers falls from 250 to 200, and output drops from 5000 to 4800 units per day. In Company Y, the number of workers rises from 800 to 1000, and output rises from 2000 to 2200 units per day. What happens to labour productivity of the workers in the two companies?

  • Acompany X: falls; company Y: rises
  • Bcompany X: rises; company Y: falls
  • Ccompany X: rises; company Y: rises
  • Dcompany X: falls; company Y: falls

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