Assume you are in the business of producing and selling milkshakes. If you could produce more milkshakes with the same input, what would happen to your productivity and profits assuming the price of your milkshakes remains the same?
A) Increase in productivity, decrease in profits.
B) Increase in productivity, increase in profits.
C) Decrease in productivity, decrease in profits.
D) Decrease in productivity, increase in profits.

Question

Quizplus · Accepted Answer

Producing more milkshakes with the same input increases productivity. Assuming the price remains the same and demand is sufficient, selling more would also increase profits.

Assume You Are in the Business of Producing and Selling