A company uses 50 workers and 20 units of capital to produce 400 units of output. If this company increases its capital to 30 units and, as a result, its output increases by 100 units, the productivity of labor ________ to ________ units per worker.
A. increases; 10
B. decreases; 4
C. increases; 2
D. increases; 5
Answer: A
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b. decrease the money supply. c. leave the money supply unchanged. d. have an indeterminate effect on the money supply.
Explain why a monopsonist's marginal labor cost curve must lie above its labor supply curve
Leontief suggested that his results were not a paradox once we account for differences in:
a. resource endowments. b. capital stocks. c. labor forces. d. resource productivities.
The equilibrium level of GDP is always accompanied by full employment and stable prices.
Answer the following statement true (T) or false (F)