A manufacturing firm increases its total weekly output by 5% during a period in which the total hours worked by its workforce increases by 12%. Assuming wage rates and all other input prices remain unchanged, this change is most likely to result in:
a decrease in labour productivity and an increase in unit labour costs.
a decrease in labour productivity and a decrease in unit labour costs.
an increase in labour productivity and a decrease in unit labour costs.
an increase in labour productivity and an increase in unit labour costs.
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.