If a manager wanted to increase the ratio of outputs to inputs, she should ________.
A) decrease the selling price
B) increase productivity
C) increase the quality of inputs
D) hire additional employees

Question

Quizplus · Accepted Answer

The ratio of outputs to inputs can be increased by increasing productivity, which means producing more outputs with the same inputs or producing the same amount of output with fewer inputs. Decreasing the selling price would lower the revenue and may not necessarily increase the ratio of outputs to inputs. Increasing the quality of inputs would likely increase the cost of inputs, which could potentially decrease the ratio of outputs to inputs. Hiring additional employees could increase productivity, but it could also increase overhead costs, which could potentially decrease the ratio of outputs to inputs. Therefore, the best choice to increase the ratio of outputs to inputs is to increase productivity.

If a Manager Wanted to Increase the Ratio of Outputs