If the material usage per unit of final product decreases to half of the current usage, then the firm will double the material productivity.increase the multifactor productivity.decrease capital productivity.have no effect on productivity.
A) I
B) II
C) both I and II
D) III
E) IV

Question

Quizplus · Accepted Answer

If the material usage per unit of final product decreases to half of the current usage, then the firm will double the material productivity as measured by material productivity = output/material input. This will also increase multifactor productivity as it takes into account all inputs, including materials. Capital productivity, however, is not affected by a change in material usage per unit of final product, as it relates to the output of the firm in relation to its capital input.

If the Material Usage Per Unit of Final Product Decreases