Business, 04.04.2020 03:29 brookieharrisop5n7us

XYZ Inc, is a leading manufacturer of construction equipment in country A. Recently the ﬁrm automated a part of their assembly line in the road rollers lelSiOn. Some of the workers at XYZ were made redundant by this automation The labor union leader, Debra Jackson, argues that the ﬁrm can avoid laying them off by moving these workers to its tractor production division. The ﬁrm did absorb some of the laid off workers from the road roller division in the production of tractors, expecting output to increase by about 10 percent However, output did not increase as much as expected. Which ofthe following, iftrue, can explain this outcome? ' .

A. The ﬁrm recently gave in to the workers' demand for higher pay in the tractor division. 3

B. The capital-labor ratio in the tractor division declined substantially when these workers were absorbed.

C. XYZ is planning to eventually automate more processes in both divisions. ' .

D. A boom in the real estate market increased the demand and consequently the prices of XYZ's products.

E. All walkers absorbed in the road roller divi5ion were thoroughly trained.

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