Question

Widget Corp. produced $10 billion worth of goods in the year 2016. If the company had 50 million hours of work in 2016, the productivity of the company is _____.

Answer 1

The productivity of the company is $200 per work hour.

Step-by-step explanation:

Productivity can be measured as the ratio of total output to a single input.

Total output in this case would be value of goods produced, which is 10*10^9 dollars.

Single input in this case would be labour measured in hours of work, which is 50*10^6 hr

Productivity of labor would be: 10*10^9 / (50*10^6) = 0.2*10^3 = $200/hr