Which of the following nets the largest productivity improvement?
A) increase output 15%
B) decrease input 15%
C) increase both output and input by 5%
D) increase output 10%, decrease input 3%
E) decrease input 10%, increase output 3%

Question

Quizplus · Accepted Answer

Decreasing input by 15% results in a larger productivity improvement because productivity is output divided by input. Reducing input while keeping output constant increases productivity more significantly than the other options.

Which of the Following Nets the Largest Productivity Improvement