Vericol, Inc

question 133

Multiple Choice

Vericol, Inc. manufactures drugs using workers and automated machines. The firm has decided to replace two workers with a new machine, while the output per day is not expected to change. Which of the following cannot be true?

• A) labor productivity will increase
• B) machine productivity will decrease
• C) labor productivity will decrease
• D) multifactor productivity will increase
• E) multifactor productivity will decrease

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Definitions:

Utility-Maximizing

The process of adjusting consumption of goods and services to achieve the highest possible level of satisfaction or utility.

Satisfaction

Describes the feeling of fulfillment or pleasure that comes from acquiring or consuming a product or service.

Stock Market Crash

A sudden and significant decline in the stock market prices, leading to a loss of paper wealth and often preceding economic downturns.

Consumption Expenditures

The total amount spent by consumers on goods and services for personal use.