Suppose that 10 workers were required in 2010 to produce 40,000 bushels of wheat on a 1,000-acre farm.
a. What is the average output per acre? Per worker?
b. If in 2020 only 8 workers produce 44,000 bushels of wheat on that same 1,000-acre farm, what will be the average output per acre? Per worker?
c. By how many percentage points does productivity (output per worker) increase over those ten years? Over those ten years, what is the average annual percentage increase in productivity?
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