Assume You Are in the Business of Producing and Selling

Multiple Choice

Assume you are in the business of producing and selling hats. If you could produce more hats with the same input, what would happen to your productivity and profits assuming the price of your hats remains the same?

A) Increase in productivity, decrease in profits.
B) Increase in productivity, increase in profits.
C) Decrease in productivity, decrease in profits.
D) Decrease in productivity, increase in profits.