Economics 2281 · O Level · Firms and production

Firms and production — practice question

A farmer brings in machinery to assist workers during the harvest period. The farmer also cuts the number of workers by $50\%$. As a result, the total harvest rises by $25\%$. What has taken place?

  • ALabour productivity has decreased and production has decreased.
  • BLabour productivity has decreased and production has increased.
  • CLabour productivity has increased and production has decreased.
  • DLabour productivity has increased and production has increased.

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