_____ is the ratio measure of how well a firm does in using its inputs to create outputs.

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24-08-2022
Business

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_____ is the ratio measure of how well a firm does in using its inputs to create outputs.

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qwcherry qwcherry · Answer 1 · 2022-08-30T18:20:35+02:00

Productivity is the ratio measure of how well a firm does in using its inputs to create outputs.

Productivity is often defined as a ratio between the output volume and also the volume of inputs. In other words, it measures firm how efficiently production inputs, like labor and capital, are getting used in an economy to supply a given level of output.

Productivity could be a measure of economic performance that compares the number of products and services produced (output) with the quantity of inputs accustomed to produce those goods and services. This allows us to judge how efficiently various resources are being employed.

Partial productivity or single-factor productivity is once we compute productivity because the ratio of output relative to one input. For instance, we are able to compute machine firm productivity or labor productivity. Productivity increases when more output is produced with the identical amount of inputs or when the identical amount of output is produced with less inputs.

There are two widely used productivity concepts. Multifactor productivity (MFP) is calculated as a ratio of output to a mixture of inputs. For major sector measures, MFP is the ratio of output to labor and capital (buildings, machines, inventories, land). Productivity is the state of having the ability to form, particularly at a top quality and quick speed.

An example of productivity is having the ability to form top notch school projects during a limited amount of your time. An example of productivity is how quickly a toy factory is ready to supply toys.

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