Answer to Question #100420 in Microeconomics for Syaa

Question

Explain shortage of labour effects the production of palm oil

Answer 1

Since in the short term the stock of capital is constant, and labor is a variable factor, all changes in output are associated with a change in the stock of labor in the economy.

It is possible that a lack of labor may inhibit the growth of palm oil production.

That is, in order to explain changes in the volume of output, it is necessary to study the labor market, find out what determines the demand for labor, labor supply and equilibrium in the labor market.