The total output from a production system in one day is 500 units and the total labor necessary to produce the 500 units is 350 hours. Using the appropriate productivity measure, which of the following numbers represents the resulting productivity ratio?

a) 1.000
b) 1.428
c) 0.411
d) 0.700
e) None of the above

b) 1.428

Explanation:

Productivity is measured by the ratio between the total daily production output (500 units), and the number of labor hours necessary to generate the present output (350 hours). The productivity ratio for this production system is:

The resulting productivity ratio is 1.428 units/hour.

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