Three Commonly Used Productivity Variables Are

question 14

Multiple Choice

Three commonly used productivity variables are

• A) quality, external elements, and precise units of measure.
• B) labour, capital, and management.
• C) technology, raw materials, and labour.
• D) education, diet, and social overhead.
• E) quality, efficiency, and low cost.

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Definitions:

Capital

Resources, such as funds or assets, used by businesses and individuals to create wealth through investment or production.

Isoquants

Curves that represent combinations of various input factors that produce the same output level.

Production Function

A mathematical relationship that describes how inputs like labor and capital are converted into outputs, representing the maximum output possible from a given set of inputs.

Technical Efficiency

The ability of a firm to get the maximum output from a given set of inputs, minimizing waste.