In 2011 modern electronics produce 60,000 calculators, employing 80 workers, each of whom worked 8 hours per day. in 2012, the same firm produce 76,500 calculators, employing 85 workers, each of whom worked 10 hours per day. productivity at modern electronic.
a. decresed by 4%
b. remained constant
c. increased by 8.33%
d. increase by 27.50%

The answer is A. Decreased by 4%.

Explanation:

Calculations are as shown below:

In the year of 2011:

Modern Electronics working hour's per day = Number of workers x working time per day = 80 x 8 = 640 hours

Number of calculators Modern Electronics made per one working hour ( that is, productivity) = 60,000 / 640 = 93.75 calculators.

In the year of 2012:

Modern Electronics working hour per day = Number of workers x working time per day = 85 x 10 = 850 hours

Number of calculators made per one working hour ( that is, productivity) = 76,500 / 850 = 90.00 calculators.

Comparision of productivity in the year 2012 over the year 2011 = 90/93.75 -1 = -4%

Thus, productivity decrease 4% in the year 2012 in comparison to the year 2011.

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