Economics 9708 · AS & A Level · 7.7

7.7 — practice question

Company X cuts the number of workers it employs from 250 to 200, and its output falls from 5000 to 4800 units per day. Company Y raises its workforce from 800 to 1000, and its output rises from 2000 to 2200 units per day. What change occurs in the labour productivity of 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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