Total factor productivity will increase if:

Question

Quizplus · Accepted Answer

Total factor productivity is a measure of efficiency that compares the amount of output produced to the amount of inputs used. Therefore, if outputs increase while inputs remain constant, the company is producing more with the same amount of resources, leading to an increase in total factor productivity. Options A and C would reduce productivity as they imply inefficiencies in the use of inputs, while option B is irrelevant to productivity.

Total Factor Productivity Will Increase If