Suppose that in year 1 a company produced $100 Million worth of outputs while inputs totaled $50 Million. For which of the following values in year 2 would productivity decrease?
A) outputs = $90 Million, inputs = $50 Million
B) outputs = $400 Million, inputs = $200 Million
C) outputs = $250 Million, inputs = $100 Million
D) outputs = $50 Million, inputs = $25 Million
E) outputs = $60 Million, inputs = $25 Million

Question

Quizplus · Accepted Answer

Calculate the P= O/I for each;
90 / 50 = 1.8
a is the only one less than Year 2.

Suppose That in Year 1 a Company Produced $100 Million