Question

Assume you are in the business of producing and selling cars. if you could produce more cars with the same input, what would happen to your productivity and profits assuming the price of your cars remains the same?

Answer 1

If you are able to produce more cars with the same amount of work as previously, assuming the price of your car reminds the same, you should have an increase in profit and productivity. Using the same amount of input to create more shows how you are increasing your productivity because you are making better use of the time you spend working. When you increase your productivity and have more cars to sell, you have a better chance of increasing profit.