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Analyzing Productivity Changes in a Factory
A textile factory employs 100 workers, each working 40 hours a week. Initially, the factory produces 20,000 meters of fabric per week. After installing new automated looms, the same 100 workers, still working 40 hours a week, now produce 30,000 meters of fabric.
- Calculate the labor productivity (output per worker-hour) before and after the new looms were installed.
- Based on your calculations, explain how the new technology impacted the factory's labor productivity.
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Analyzing Productivity Changes in a Factory
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