Q.

Factors of production include land, labour, capital and enterprise.   Land is a fixed factor whereas labour is variable factor.Land productivity is determined as a ratio of output achieved per unit of variable input deployed. In this sense :

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a

An increase in labour will increase land productivity

b

A decrease in labour will decrease land productivity.

c

An increase in labour will decrease land productivity

d

Land productivity is not impacted by increase or decrease in labour.

answer is B.

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Factors of production include land, labour, capital and enterprise.   Land is a fixed factor whereas labour is variable factor.Land productivity is determined as a ratio of output achieved per unit of variable input deployed. In this sense :