3.1 Productivity and production Flashcards
What is production?
Inputs leading to outputs
What is productivity?
The production per (machine/employee/average output)
What is short run production?
Occurs when a firm adds variable factors of production to fixed factors of production
What is long run production?
Occurs when a firm changes the scale of all the factors of production.
How do you calculate productivity?
Total outputper period of time / Number of units of FoP
How do you calculate labour productivity?
Total output per period of time / Number of units of labour
What is the productivity gap?
The difference between the productivity in the UK and in other developed economies.
What is productive efficiency?
Maximum production possible at the lowest average cost
How do you calculate the average total cost?
Total cost / output
How is productive efficiency shown?
Using an average cost curve diagram
