A software development firm increases its workforce from 80 developers to 120 developers. Initially, each developer worked 40 hours per week, and total weekly output was 4,800 functional code modules. After the workforce expansion, the firm reduced the working hours to 35 hours per developer per week, and total weekly output rose to 7,560 modules.
Which of the following represents the percentage change in the firm's labour productivity per worker-hour?
5.0%5.0\%5.0% increase
15.0%15.0\%15.0% increase
20.0%20.0\%20.0% increase
57.5%57.5\%57.5% increase
156 exam-style questions on AQA A Level Economics 1.4 Production, costs and revenue, covering 1.4.1 Production and productivity, 1.4.2 Specialisation, division of labour and exchange, 1.4.3 The law of diminishing returns and returns to scale (A-level only), 1.4.4 Costs of production, 1.4.5 Economies and diseconomies of scale, 1.4.6 Marginal, average and total revenue, 1.4.7 Profit, and 1.4.8 Technological change (A-level only). Each one has a worked solution and a mark scheme showing where the marks go.