Production and productivity

• Production


  Converts inputs, such as factors of production, into a final output to satisfy consumer needs and wants.
• Production


  Output per worker per period of time
• Being more productive means having the same number of inputs but achieving higher output over the same period of time.
• Being more productive lowers average costs per unit of output.
• Being less productive means needing a larger number of inputs to achieve the same amount of output.
• Productivity can be increased by training workers or using more advanced capital machinery.