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Mance Fraily, the production manager at Ralts Mills, can currently expect his operation to produce 1000 square

metres of fabric for each tonne of raw cotton. Each tonne of raw cotton requires 5 labour hours to process. He believes that he can buy a better quality raw cotton, which will enable him to produce 1200 square metres per tonne of raw cotton with the same labour hours.

What will be the impact on productivity (measured in square metres per labour-hour) if he purchases the higher quality raw cotton?


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