Calculating Firm Profitability

A manufacturing firm successfully implements a new production process that raises the output per worker by 10 units per day. Simultaneously, a new union contract increases the real wage for each worker by 6 units of output per day. Based on this information, what is the direct impact on the firm's real profit per worker?

True or False: If a firm's output per worker increases while its real profit per worker remains constant, it logically follows that the real wage paid to the worker must have also increased.

Calculating Real Profit per Worker