O Levels Economics (2281)•2281/12/M/J/25

Explanation
Training Enhances Chef Efficiency
Steps:
- Define productivity as output (meals) per input (chef time or effort).
- Identify factors affecting output: skills, resources, demand, incentives.
- Evaluate each option's impact on output relative to input.
- Select the option that directly improves skills to increase meals per chef.
Why D is correct:
- Training raises human capital, allowing chefs to produce more meals per hour, per the economic definition of productivity as output per unit of input.
Why the others are wrong:
- A: Fewer customers reduce total output without changing efficiency per chef.
- B: Lower pay may demotivate chefs, decreasing effort and productivity.
- C: Higher food quality might slow preparation, reducing meals per chef without efficiency gains.
Final answer: D
Topic: Firms and production
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