Economics (AS & A Level) · Oct / Nov 2022 · Paper 32 · Question 22

A firm initially employs 50 workers, each working 40 hours a week, and produces a total output of 18 000 units. It then employs an additional 10 workers, again each working 40 hours, and total output rises to 19 200 units. Which effect does this rise in employment have on labour productivity per hour?

1. Adecreases it by 1 unit
2. Bdecreases it by 40 units
3. Cincreases it by 120 units
4. Dincreases it by 1200 units

As printed in the paper