A small lawn care company has two mowers and four employees.If it hires another employee and the factors of production remain the same, how will the productivity of the fifth employee compare to that of the current four employees?

Question

Quizplus · Accepted Answer

Since the factors of production remain the same but there is an additional employee, the same amount of work will need to be divided among five employees instead of four. This will lead to a decrease in productivity for each employee as they will have less work to do individually.

A Small Lawn Care Company Has Two Mowers and Four