Answer:
The correct answer is, the employees are not employed optimally
Explanation:
Solution
Given that,
The Optimal level of employment is determined by the ratio of productivity of workers which is equal to the ratio of wage rates.
Now,
The Productivity of A = 20
The Productivity of B = 15
The Ratio of productivities is known as = 20/15
Which is 4/3
Thus,
The Wage of A = K12
The Wage of B = K8
The Ratio of wages = K12/K8 = 3/2
(4/3) is not ≠ (3/2)
However, it is known that the ratio of wages and ratio of productivities are the same with each other.
For this, the employees are not optimally employed.
