Assume you are in the business of producing and selling hamburgers. If you could produce more hamburgers with the same input what would happen to your productivity and profits assuming the price of your hamburgers remains the same?
A) Increase in productivity, decrease in profits
B) Increase in productivity, increase in profits
C) Decrease in productivity, decrease in profits
D) Decrease in productivity, increase in profits

Question

Quizplus · Accepted Answer

Producing more hamburgers with the same input increases productivity because you're getting more output per unit of input. Assuming the price remains the same and costs do not increase, selling more hamburgers would also increase profits.

Assume You Are in the Business of Producing and Selling