A Company Uses 100 Workers and 30 Units of Capital

question 183

Multiple Choice

A company uses 100 workers and 30 units of capital to produce 500 units of output. If this company increases its capital to 50 units and, as a result, its output increases by 300 units, the productivity of labor ________ to ________ units per worker.

• A) increases; 8
• B) increases; 1
• C) increases; 3
• D) decreases; 4

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Definitions:

Sound Waves

Vibrations that travel through air or another medium, which can be heard when they reach a person's or animal's ear.

Vestibulocochlear Nerve

The eighth cranial nerve that transmits sound and equilibrium (balance) information from the inner ear to the brain.

Auditory Tube

Also known as the Eustachian tube, it connects the middle ear to the nasopharynx and helps equalize pressure between the middle ear and the atmosphere.

Seasonal Inventory

Inventory stockpiled in anticipation of seasonal demand peaks to ensure adequate supply and optimal service levels.