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Economics Q52

0. Two analysts made the following comments about labor productivity.
Analyst 1: Labor productivity is calculated by dividing total labor employed by total output.
Analyst 2: Marginal labor productivity is the most useful measure for analyzing the labor productivity as it considers addition to total product from increasing one more unit of labor. Which analyst is most likely correct?

  • Option : B
  • Explanation : B is correct. Analyst 1 is not correct because labor productivity is calculating by dividing total output by total labor. Analyst 2 is correct.
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