A firm initially employs 50 workers, each working 40 hours a week, and produces a total output of 18000 units. It then employs an additional 10 workers, again each working 40 hours, and total output rises to 19 200 units.
What effect does this rise in employment have on labour productivity?
decreases it by 1 unit
2 )
decreases it by 40 units
3 )
increases it by 120 units
4 )
increases it by 1200 units
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