A Partial Operational Productivity Measure

question 134

Multiple Choice

A partial operational productivity measure:

• A) Uses physical units in both the numerator and denominator.
• B) Is harder to understand than a partial financial productivity measure.
• C) Is affected by price changes and other factors.
• D) Is a comprehensive productivity measure.
• E) Has the advantage of considering the effects of both speed and quantity of a resources input on productivity.

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Definitions:

Highly Elastic

Describes a situation where demand for a product is highly sensitive to changes in price, leading to significant changes in quantity demanded.

Highly Inelastic

A situation in which demand or supply changes very little in response to large changes in price, often applicable to essential or unique goods and services.

Herfindahl Index

An economic indicator used to measure the size of companies in relation to the industry and the level of competition among them.