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A Company Used to Produce 500 Units Every 2 Days

question 52

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A company used to produce 500 units every 2 days, but 10% of the units were defective. After installing a new process, defects have been eliminated while output has remained the same. What is the percent increase in productivity due to installing the new process?


Definitions:

Disposable Income

Funding available to households for their spending and saving plans post income tax cuts.

Savings

The portion of income that is not spent on consumption but set aside for future use, often in a bank account or investment vehicle.

Consumption

The use of goods and services by households or individuals, constituting one of the primary components of the economy alongside investment, government spending, and net exports.

Savings

The portion of income not spent on consumption of goods and services but kept aside, usually in deposit accounts or investments.

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