Production and Productivity

land

table

capital

enterprise

more workers will be employed

total production will increase with the same number of workers

average costs will stay the same

fewer raw materials will be needed to produce the same level of output

employing more staff

providing pay incentives

investing in up-to-date machinery

training staff

productivity is how products are made

productivity is a measure of how many workers a business has

productivity measures efficiency

productivity measures effectiveness

firms adding value to a product

transforming raw materials into finished goods

provision of a product or service

providing only a product, not service