Question

For the month June, the multifactor productivity has been calculated to be 0.006 units per dollar. Output for the month of June was 50 units. Coincidently, July’s output was also 50 units. In addition, several input costs during the month of July decreased while the rest of the input costs remained exactly the same, as compared to the month of June. If we were to calculate the multifactor productivity for July, we would expect it to ____________, as compared to June’s multifactor productivity.

Answer 1

Answer:

Decline

Explanation:

Multifactor productivity will decline in july because because some of the inputs are now cheaper so they will be used in more quantity than the previous month while output has no changed.