XYZ Inc., is a leading manufacturer of construction equipment in country A. Recently the firm automated a part of their assembly line in the road rollers division. Some of the workers at XYZ were made redundant by this automation. The labor union leader, Debra Jackson, argues that the firm can avoid laying them off by moving these workers to its tractor production division Which of thefollowing, if true, would suggest that Debra's idea is not necessarily feasible for the firm?a. Most of the workers laid off due to the automation of the road roller division are unskilled.b. Average product of labor in the tractor division is currently equal to the marginal product.c. The tractor division is yet to experience diminishing returns to labor.d. Sales of XYZ's tractors are higher than its road roller sales. E. The average cost of producing tractors is declining.
