Economics 0455 · IGCSE · Firms and production

Firms and production — practice question

A company made 200 cars each week and had 50 employees. Because demand fell, output was cut to 160 cars per week and the workforce to 32. What percentage change occurred in the firm’s productivity?

  • AIt fell by 20%.
  • BIt fell by 25%.
  • CIt increased by 20%.
  • DIt increased by 25%.

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