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Answer :
A firm operates 10 hours each day, producing 100 parts/hour. If productivity were increased 20%, between 8 and 9 hours the plant would have to work in order to produce 1000 parts.
Productivity increases when more output is produced without even increasing the input. So the same output is produced with less input. Increase in productivity can help one set better goals, be more effective, boost motivation and increase focus.
So a firm while operating 10 hours each day produces 100 parts/hour. Here, if the increased productivity is by 20%, then it shall take around 8 to 9 hours to produce 1000 parts.
Hence, productivity means how much output can be produced with a given set of inputs.
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