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 lelSiOn. 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. The firm did absorb some of the laid off workers from the road roller division in the production of tractors, expecting output to increase by about 10 percent However, output did not increase as much as expected. Which ofthe following, iftrue, can explain this outcome? ' .

A. The firm recently gave in to the workers' demand for higher pay in the tractor division. 3

B. The capital-labor ratio in the tractor division declined substantially when these workers were absorbed.

C. XYZ is planning to eventually automate more processes in both divisions. ' .

D. A boom in the real estate market increased the demand and consequently the prices of XYZ's products.

E. All walkers absorbed in the road roller divi5ion were thoroughly trained.