BUSINESS ADMINISTRATION
MARKETING MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Productivity increases and profits increase
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Productivity decreases and profits increase
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Productivity increases and profits decrease
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Productivity decreases and profits decrease
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Detailed explanation-1: -Productivity increases when: more output is produced without increasing the input. the same output is produced with less input.
Detailed explanation-2: -Productivity increases when more output is produced with the same amount of inputs or when the same amount of output is produced with less inputs. There are two widely used productivity concepts. Labour productivity is defined as output per worker or per hour worked.
Detailed explanation-3: -If you use fewer resources to achieve more output, you will typically have high productivity. Profitability is the revenue left over after all expenses and taxes have been paid. You can increase your profitability by producing more products while paying less for the resources needed to produce and sell them.
Detailed explanation-4: -As an economy’s labor productivity grows, it produces more goods and services for the same amount of relative work. This increase in output makes it possible to consume more of the goods and services for an increasingly reasonable price.