If worker productivity increases by 4%, wages per hour increase by 4%, and hours worked increases by 8%, what is the change in unit labor cost?
Click on the arrows to vote for the correct answer
A. B. C. D. E.E
Per-unit labor cost is a function of the percentage change in hourly wages minus the percentage change in productivity during some period of time. In this question, the increase in worker productivity exactly offsets the increase in hourly wages.