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Yep, so by definition if your input (higher wage) increases while your total output stays the same, then the ratio once divided shows productivity per unit has
by guiriduro 4y ago
Yep, so by definition if your input (higher wage) increases while your total output stays the same, then the ratio once divided shows productivity per unit has decreased, as OP said.
- Xylakant 4y agoThe input is not the cost of the hours worked, but the number of hours worked. Essentially, productivity measures the number of items a worker can produce per hour worked. Wage or cost doesn’t enter the equation.
- vba616 4y agoAs to what I wrote, the output is commonly measured in financial terms, isn't it? And in theory, the output is equal to one's income, or the value added. https://en.wikipedia.org/wiki/Gross_domestic_product https://en.wikipedia.org/wiki/Gross_domestic_product (Production approach vs Income approach)