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Current Measures of Productivity in the Service Sector Provide an Accurate

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Current measures of productivity in the service sector provide an accurate measure of changes in the quality of output.


Definitions:

Technology Changes

The process of innovation and the adoption of new or improved technologies and systems.

Demand For Labor

The total amount of hours of work that employers are willing to pay for at a given wage rate in the economy.

Marginal Physical Product

The additional output produced by employing one more unit of a specific factor of production, holding all other factors constant.

Marginal Revenue

The additional revenue earned by a firm for selling one more unit of a good or service, crucial for decision-making on production levels.

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