Higher productivity results in higher costs and higher prices,resulting in lower income and lower profitability.

Question

Quizplus · Accepted Answer

Higher productivity can actually result in lower costs and lower prices if it leads to more efficient use of resources. This can result in higher income and profitability if the lower costs and prices lead to increased demand for the product. However, if higher productivity results in increased costs (such as through investment in new technology or training) and higher prices, it may lead to lower income and profitability if demand does not increase proportionally.

Higher Productivity Results in Higher Costs and Higher Prices,resulting in Lower