Economics 0455 · IGCSE · Firms and production

Firms and production — practice question

The table illustrates the way a firm’s output changes when it hires additional workers. number of workers: 10, 20, 30, 40 total production (kilos): 50, 100, 300, 600 What occurs to productivity as the number of workers employed increases?

  • AIt is constant then falls.
  • BIt is constant then rises.
  • CIt rises then becomes constant.
  • DIt rises continuously.

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