Productivity
A measure of output per unit of input, showing how efficiently resources are being used to produce goods or services.
Formula
Labour Productivity = Output ÷ Number of Workers
Real World
When Apple switched to automated assembly robots for certain iPhone components, output per worker increased significantly, reducing unit labour costs and strengthening Apple's margins.
Exam Focus
Always calculate productivity with the formula and then explain the implication for unit costs — don't just state the number.
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