A farmer, Ramu, produces wheat on his piece of land of 10 acre. He employed 50 workers on his plot of land to produce 30 quintals of wheat. One day, due to some dispute, some of his workers left the farm work and never returned.
So now, what do you think can be the output of wheat?(the figures are hypothetical).
So now, what do you think can be the output of wheat?(the figures are hypothetical).
Answer & explanation
Correct answer: option 1
If we fix capital (Land in this case) and decrease the labour(workers in this case), output decreases.