Which situation best illustrates a business increasing its productivity?
Question
Which situation best illustrates a business increasing its productivity?
Solution
A business increasing its productivity can be best illustrated by the following situation:
A manufacturing company previously produced 100 units of a product per day with 10 employees. The company then introduces new machinery and trains its employees to use it. After this change, the same 10 employees are now able to produce 150 units per day. This increase in output (from 100 units to 150 units) with the same amount of input (10 employees) is a clear example of a business increasing its productivity.
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