What transpires to costs, output and employment when productivity boosts?

Question by Newlywed: What takes place to costs, output and employment when productivity improves?
What takes place to costs, output and employment when productivity improves?

a. all 3 rise
b. rates increase, output and employment drop
do. prices drop, output and employment rises
d. only costs increase

I am obtaining problems pondering this a single by way of, assist me comprehend why you chose the answer you choose. Thanks in progress.

Best solution:

Reply by aCeRBic
Use your noggin, i will reply since no one particular else will. If you make pancakes and your stage of production of pancakes rises (productiveness rises) your output of pancakes has to enhance, correct? If you have a factory that produces pancakes and to boost output you have to uncover much more help, proper? So employment rises. If there are much more pancakes in the market place, assuming need stays level, then charges fall considering that there’s a lot more product. So response is Do.

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