productivity and efficiency Flashcards
(4 cards)
1
Q
what is productivity?
A
a measure of efficiency- measures firms output in relation to input
2
Q
what is efficiency?
A
making the best use of resources available to the business
3
Q
formula for labour productivity?
A
output/ NO employees
4
Q
what can an increase of productivity do to the profit margin?
A
it may lower the cost per unit of production and lead to a higher profit margin
