Economics 0455 · IGCSE · Firms and production

Firms and production — practice question

Some agricultural co-operatives have switched from labour-intensive to capital-intensive production methods. What could be a reason for this change?

  • AAverage productivity of agricultural workers has increased.
  • BFarming equipment has become more efficient.
  • CPeople are eating less food for health reasons.
  • DSome agricultural land has been sold for housing.

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