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essentially the efficiency in which a company or economy can transform
resources into goods, potentially creating more from less.
can effectively raise living standards through decreasing the required
monetary investment in everyday necessities (and luxuries), making
consumers wealthier and business more profitable and in turn enabling
higher government tax revenues.
Economists looking to measure this productivity within a given system generally leverage production functions to determine how different factors of production (i.e. inputs) affect the overall output.
final important consideration in assessing productivity potential is
the production-possibility frontier (PPF), which outlines the maximum
production quantity of two goods in the scope of our current
technological capacity and supply
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Jun 19th, 2015
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