These variations in productivity have no effect on Tuma Unlimited's average fixed cost.
How Does Productivity Work?
Productivity is a measure of economic performance because it contrasts the quantity of products and services produced (out) with quantity of inputs needed to produce those goods and services. Productivity is typically defined as the proportion of input matrix to output volume.
What does productivity look like?
Standard criteria for assessing productivity include production by employee per hour or production per employee. The ability of each person to produce a set quantity or cash value of finished items in a certain amount of time can be used as a production indicator in the manufacturing industry.
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