The implementation of the assembly line is an example of how
A) changes in the organization of production improve productivity.
B) neutral technical change improves productivity.
C) non-neutral technical change can decrease productivity.
D) labor saving technical change increases economy-wide unemployment.
Question 2
Over a five-year span, the ABC Co reduced the amount of labor it hired. At the same time, the marginal productivity of labor increased. Which of the following COULD explain this observation?
A) the law of diminishing marginal returns
B) labor saving technical change
C) organizational innovation
D) All of the above.
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