Which Do You Think Is a Better Measure of Productivity

question 18

Essay

Which do you think is a better measure of productivity: sales per sq.ft or profit per sq.ft.? Explain.

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Definitions:

Equilibrium Price

The market price where the quantity of goods supplied is equal to the quantity of goods demanded.

Supply Decreases

A situation in which the quantity of a product or service that producers are willing and able to sell at all possible prices falls.

Demand Increases

A situation where there is a rise in the quantity of a product or service that consumers are willing and able to purchase at a given price.

Equilibrium Price

The price at which supply and demand for a product or service balance, leading to an stable market condition.