Holding wages constant, any increase in productivity will decrease business costs, improve profitability, and encourage more production.

Question

Quizplus · Accepted Answer

This statement is true. Increasing productivity means more can be produced with the same amount of labor and resources, leading to lower costs and higher profits for businesses. This can also encourage businesses to produce more due to increased efficiency and profitability.

Holding Wages Constant, Any Increase in Productivity Will Decrease Business