Question

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

Answer 1

Increase in productivity and Increase in profits

Step-by-step explanation:

Suppose you are the producer and seller of hamburgers.

Price of hamburgers remains constant.

Assume that initially you are producing 20 hamburgers with some amount of inputs.

Now, if you are producing 40 hamburgers with the same amount of inputs then this would implies that there is an increase in the productivity that's why output increases with the same level of inputs.

Therefore, this would indicate that an increase in the output will result is an increase in the profits.