Assume you are in the business of producing and selling hamburgers. If you could 2) produce more hamburgers with the same input, what would happen to your productivity and profits assuming the price of your hamburgers remains the same?

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Business

Nigel Dawson

30 May, 19:19

Assume you are in the business of producing and selling hamburgers. If you could 2) produce more hamburgers with the same input, what would happen to your productivity and profits assuming the price of your hamburgers remains the same?

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Maribel Stark · Answer 1

If you can produce more hamburgers with the same input, it means that the cost of raw materials remains the same, while the output increases. In other words, your producitivy has risen because with the same amount of inputs you now produce more output.

As for profits, these will likely increase as well, because while the selling price remains the same, you have now more hamburgers available for sale, and if you manage to sell all, or most of these additional output, your profits will rise as well.