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JAMB Economics 1993 Question 12

Question 12

Theory of Production

If labour productivity in the cement industry is increasing as output of cement is expanded, then the amount of labour per unit of output produced must be

  1. A.less than zero
  2. B.decreasing
  3. C.constant
  4. D.increasing
Show the answer and explanation

Answer: B (decreasing)

Explanation

Higher output per worker means fewer workers (less labour) are needed for each unit of output.