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.
