Firm productivity is a primary determinant of an organization's level of profitability and ultimately,of its ability to survive.

Question

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Firm productivity, which relates to the efficiency of the organization's processes and use of resources, is a key factor in determining its profitability and long-term survival. When a company can produce more output with the same or fewer inputs, it can generate higher revenues and profits, which can be reinvested in the business to fuel further growth and innovation. On the other hand, if a firm's productivity stagnates or declines, it may struggle to compete with rivals and attract customers, leading to declining sales and profitability over time.

Firm Productivity Is a Primary Determinant of an Organization's Level