Short Answer

Productivity in a Limited Workspace

A workshop with a fixed number of tools and space initially employs 20 artisans who collectively produce 500 handcrafted chairs per month. Due to increased demand, the workshop hires 10 more artisans, and the total monthly output increases to 600 chairs. Calculate the average monthly output per artisan before and after the new hires. Based on your calculation, explain the economic principle demonstrated by this change in average productivity.

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Updated 2025-07-17

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