O Levels Economics (2281)•2281/13/O/N/21

Explanation
Labor productivity measures output per unit of labor input
Steps:
- Define labor productivity as cakes produced per labor hour: cakes ÷ labor hours.
- Calculate for A: 40 cakes ÷ 10 hours = 4 cakes/hour.
- Calculate for B: 640 cakes ÷ 40 hours = 16 cakes/hour.
- Calculate for C: 750 cakes ÷ 50 hours = 15 cakes/hour; for D: 500 cakes ÷ 100 hours = 5 cakes/hour.
Why B is correct:
- B yields the highest productivity (16 cakes/hour) using the formula output per input.
Why the others are wrong:
- A: Lowest productivity at 4 cakes/hour.
- C: Productivity of 15 cakes/hour, below B's 16.
- D: Productivity of 5 cakes/hour, far below B.
Final answer: B
Topic: Firms and production
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