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Demand for labour

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Question 3

An assembly-line worker at an electric vehicle component plant is paid £19.20 per hour. Due to the introduction of new pneumatic tools, the worker's average hourly productivity increases from 16 units per hour to 24 units per hour.

What is the change in the unit labour cost to the firm?

Increases by £0.40

Decreases by £0.42

Decreases by £0.40

Decreases by £0.80

Demand for labour Questions

  1. A Level
  2. /Economics
  3. /Demand for labour